Mum and Dad Investors vs. the Professionals

[Judd]

Or one that is on the "recommended" list from their research department. Fell for that once but fortunately we got a five figure sum back as compensation when we complained.

....Interesting, Judd. I'd also be keen to know more about this.....

Nothing really mysterious. We were trying to get a grip on where to invest some funds, obviously stating that we are of the cautious kind and no specs please, the broker recommended a company Q-vis. If you wish to know about the company have a look at delisted.com.au.

Found out that one arm of the broking firm had an interest in the company and some of the front office brokers were encouraged to flog it to muppets such as us. Grrrrrr.

Complained to head office of broking firm that it did not met our requirements as conservative investors, blah, blah for two pages so add an additional blah.

End result was, with the usual argy bargy, we reached agreement on the compensation amount. Took a few months but it was all very civilised.

 

[condog]

SkyQuake,
Anyone would be mad to sell such a system, you only sell systems that don't really work.
brty

Whilst I have extreme doubts about most marketed trading systems , there are tried and proven technical skills that often work with probable outcomes.....Most this info is available free

In terms of selling only systems that dont work......Surely thats not true......

The premise of any successful business is to satisfy customers more and more for longer and longer and have them buy more and more from you, plus thier friends etc etc...(crude definition only)

Id be more inclined to say most trading systems ive seen apply proven trading systems to predominately dreadful ( thus volatile) stocks....
Due to this they tend to work well in sideways and climbing markets and then burn people very badly when GFC, Twin tower type events aris.

 

[Dona Ferentes]

Smartphone trading by mum and dad investors has surged to record levels during the pandemic-induced recession in what has become a "groundbreaking year for home traders". Banks report online share market trading volumes have tripled and the value of trades has also increased, with renewed optimism driven by the potential of a coronavirus vaccine.

Westpac's head of investment products Rodney Greenhalgh said there had been a "dramatic spike" in trading volumes, new account applications and customer contacts. New account openings were up by about 330 per cent over the March quarter. This has slowed since but remains up dramatically year-on-year with new accounts up 240 per cent for the six months to September compared to 2019. Trading volumes were also up by more than 200 per cent over the six months to September and the value of these trades increased.

"We have also experienced a continued increase in the use of mobile devices to place trades," Mr Greenhalgh said, with about a third of all trades taking place on smartphones and tablets compared to a quarter last year....

NAB's director of investor behaviour for trading service nabtrade Gemma Dale said it had been a "ground breaking year for home traders" with levels of trading at more than double the average rates during some of the top days this year.

"[This has] been driven by the cut in interest rates, promising vaccine news and the riveting US election," Ms Dale said.

The Commonwealth Bank revealed in its annual results that share trading service CommSec, the largest online stockbroking firm in Australia, has seen record retail investor activity with 400,000 new accounts and 400,000 new smartphone application downloads during the year. CommSec launched micro-investing app CommSec Pocket in July 2019 and has since added an extra 100,000 customers to the service, with $177 million invested since the launch. The overwhelming majority of investors on this service are under 40.

CommSec chief economist Craig James said business conditions and confidence were improving, with consumers much more positive despite a record number of new COVID cases in the US and Europe. The US sharemarket is also rising, up 4.1 per cent last week.

Micro-investing exchange traded funds app Raiz chief executive George Lucas said there had been a rapid increase in average account balances on the service "especially in more conservative strategies". "The conservative portfolio average balances have been increasing the most - this could be because of the uncertainty in the world at the moment or a hunt for higher yields that can be achieved at a bank," Mr Lucas said. "There is no doubt ... there is high awareness around the very low level of interest you are getting on your bank account while at the same time a massive increase in market talk".

http://www.smh.com.au/federal-politics/political-news/dramatic-spike-in-smartphone-trading-among-mum-and-dad-investors-20201114-p56elc.html?btis

 

[Dona Ferentes]

and the other side of this, that individuals want to take control of outcomes..... a lot of money is parked, combined, risk managed in :::: Superannuation :::: and is doing quite poorly, probably because of the various funds' inherent size and inertia (and the unstated reality of not wanting to underperform, shock horror leakage, so little risk is taken to capture the upside)

.... look at your investment portfolio or super returns for the last 12 months you will be doing well to have advanced or rebounded at all. Our best guide to overall investment returns is the progress of super fund balanced options, as that’s where most people have most of their money. So, how are they doing? Well, according to SuperRatings, the returns for the median balanced option over the past 12 months is minus 0.8 per cent. For the year to date (to the end of October) it is worse at -2.5 per cent. ...

Let’s just take a moment to look at the past. The accumulation returns on the median balanced super fund on a 10-year basis is 7.3 per cent — very nice. On a seven-year basis it’s 6.6 per cent: not bad either. On a five-year basis it’s 6 per cent. On a three-year basis it is 4.7 per cent. You get the picture.

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