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100 - 200 GBP to save a month. Suggestions?

I find myself on quite a low income now due to the telecoms recession. I have got out of debt including mortgage and wish to start saving again. I can save 100-200 per month. I did hold shares before the crash and I'm quite keen to enter the stockmarket again for capital growth in short term (say 1 year) and mix of capital growth / income in the long term. Liquidity is not too great an issue and a medium to high level of risk is about my level, though I'd alternate share purchases to have a mixed level of risk. I'd like to say spend a thousand or so on education / training / CPD in the next year say.

I haven't been keeping up with the stock market though.

If I'm only investing 100 a month then 10 - 15 charges on a tranche of shares is up to 15 per cent. Is there anywhere cheap for say a monthly purchase of 100-200, execution only?

What is the prognosis for the different bands of capitalisation and different sectors? Are big caps doing better than mid caps or small caps or what? Is the builing sector, or ICT sector for instance good for a punt

Any other savings and investments suggestions?

Reply to
Z
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Large caps have lagged substantially over the last year:

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The mid-250, like e.g. the Dow Jones, is less than 10% below its all time high, but the FTSE is still more like 35% down. Small caps have also done well. It isn't entirely clear why that's happened. Partly it's down to a preference for risky, cyclical shares, which tends to exclude the biggest companies. Partly it may be that large caps have a significant US ownership, and in dollar terms they have risen quite a lot more as the dollar has fallen. Also insurance funds have been hit by new solvency rules, and e.g. Standard Life has reduced its equity weighting quite a bit. As for sectors, there's an argument that consumer-related companies will do worse as interest rates rise, and what we're looking for is an industrial recovery - investment by companies has collapsed in the last few year, but there are a few signs of it coming back. IT looks fairly fully-valued, e.g. ARM has nearly trebled in the last year, and Reuters is up by a factor 4 (bear market, what bear market? :).

Reply to
Stephen Burke

The truth is that nobody *really* knows what is going to happen to different sectors in the next 12 months; despite a plethora of pundits on the matter. Companies should be bought on their individual merits; not because "cyclicals are in", "non-cyclicals are in", or whatever the current investment thinking is for the day.

The problem is that what is happening now is a poor indicator of what will happen in the future.

If I may be permitted a small plug for my own webpage:

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Reply to
Mark Carter

One reason is that the FTSE 100 has a different set of constituents than it did at the top of the dot.com peak. The volatile shares that drove it to its high point have been and gone, and have been replaced by more solid old-economy stocks.

Reply to
Terry Harper

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