The FTSE Trackers

Retail traders have lost a lot of money over the last few months. In March Tesla shares were valued at over $17, earlier this month they were at $11. That’s a fall of 35% and Tesla isn’t the only ‘Tech Giant’ to have suffered. Retail traders have been buying the same companies all lock down, and a failure to get out shows their inexperience.

Having said that, it’s not just retail, many professionals and institutions will have suffered the same fate. Several of the tech funds who reported such fantastic results after the crash, have given a lot back.

Investment guru Warren Buffett said earlier in the year, at his annual shareholder meeting, that the 'average person cannot pick stocks' in a warning to the wave of amateur investors who have taken up trading during the pandemic. He’s right of course, although a little luck will make many think they can.

His advice to armchair stock-pickers was that they should simply invest in stock market tracker funds. Sipping on a can of Coca-Cola, the Sage of Omaha said: 'I like [my investment company] Berkshire but I think that a person that doesn't know anything about stocks at all or doesn't have feelings about Berkshire, they ought to buy the S&P 500.'

On TPP, we give you, the investor, the option to link to a tracker, but at a leveraged rate of your choosing. If a tracker is the simplest return over time, then why not link at 1.5x or even 3x the market rate. At TPP we have a 3x FTSE market tracker that will autotrade an account with as little as £20,000. The recent performance would suggest that Buffett has a point. Just look at the results; it’s up 25.6% so far this year.

This is not all though. You can choose to increase or decrease if you would like. Most of the time, you’re better off just leaving a tracker, but how many investors wish they could have turned it off last February? By using the control panel it is possible just to pause your investment, and wait to see if the market falls. You don’t need to, but would you like to have the option?

For more information please feel free to email us here, or book in a call with one of our directors to hear more.