Doomed: Sex, population and the predicted share crash of 2008

[2uk]

People who try to pick bottoms, get stinking fingers...

I will only take calculated risks with active investing. Most of my money I will put into funds..

[ASB]

I'd like to take advantage of my IT knowledge. Obviously IT workers should make good IT investors.

That's far from obvious. I bought some MSFT in '87 shortly after the IPO Selling it in 89 didn't turn out to be the brightest move though.

As somebody working in the IT sector there is a school of thought that says you should avoid investing in that sector - because you are already very heavily invested in it. It produces your livelihood.

If the sector tanks then not only are you out of work but you have also exposed all your free asset - generated from that sector and invested back in it to that same risk.

[lukemg]

Good luck, make sure, as with any gambling, that you use money you can afford to lose. Companies and individuals with vast resources and access to incredible real-time information struggle to do this successfully, why do you, along with the telegraph Sunday supplement think you can ?
Chuck your 7k ISA allowance in a decent fund with a professional investment house - Fidelity, Jupiter etc.
Choose fund to match your approach to risk - consider conservative UK fund at first to give foundation.
Consider the cheapest tracker you can find (computer picks the stocks, only issue is the annual fee) these traditionally beat a large percentage of the stock pickers, when the costs are taken into account.
Consider discount co to purchase fund through e.g. hargreaves lansdowne. You get discount on initial purchase + they keep all the funds easy to administer on one sheet + lower annual charge.
If required chuck a k or 2 at individual stocks for 'fun'. Don't be fooled by any initial gains thinking you are Warren Buffet.
Let the funds run for a good few years (consider at least 5) and don't bottle it through the natural dips during this time.
I am averaging 11% annual return on a wide range of funds, doing this since '96
Top ones are around the 26%, some are 3-4% (but I let them ride, last years dog/sector often kicks up the next year or the one after)
Considering BRIC fund this year but ONLY because I have a conservative range of UK and europe funds which mean I can take a punt.
BTL might make you feel like you are a 'businessman' but I don't need the grief and now would be a really bad time to go this way.

Good luck all.

[2uk]

Good luck all.

Do you recommend putting all money into stocks in 2008 or keep them in saving accounts and watch what happens ?


I am considering , switching my biz bank account from HSBC to Bank of Scotland ( http://www.totalbusinessaccount.co.uk/ )
where they pay 5.60 Gross interest. This way u can actually keep all company funds ( corp tax , div tax , div themselves ) in the biz bank account and not even bother drawing dividend.

I am evaluating this option against moving my biz account to Abbey where u get 4.30 Gross . However I can also open an investment account with them as well and move most company funds ( corp tax , div tax , div themselves ) in there. I am concerned about the dark predictions for 2008 , though.

[Jog On]

In 2002, I wrote in the London Evening Standard, This is Money's sister title, about an appealing theory that claimed to accurately predict the future for the stock market.

And in my next blog post, I'll also give details of a worrying indicator that accurately predicts house price crashes: it's flashing red for the UK and 2008.

Everything I've learnt about investing so far says to completey ignore people like this. And I shall continue to do so

No one can accurately predict what's going to happen - all you can do is learn how to minimise your own risk by knowing what you're doing - and steering well clear of media hype and hysteria.... and people accurately prediciting what's going to happen.

[lukemg]

Do you recommend putting all money into stocks in 2008 or keep them in saving accounts and watch what happens ?


I am considering , switching my biz bank account from HSBC to Bank of Scotland ( http://www.totalbusinessaccount.co.uk/ )
where they pay 5.60 Gross interest. This way u can actually keep all company funds ( corp tax , div tax , div themselves ) in the biz bank account and not even bother drawing dividend.

I am evaluating this option against moving my biz account to Abbey where u get 4.30 Gross . However I can also open an investment account with them as well and move most company funds ( corp tax , div tax , div themselves ) in there. I am concerned about the dark predictions for 2008 , though.

Put 7k in stocks isa every year (if you have it spare). drip feed over the year if you want to (pound cost averaging), but this usually means you miss out on discounts, which can save as much as 5% and are therefore worth it.
Of course - you should keep 6 months expenses in cash and easily accessible, you want to cash these funds in when you want to, not when you are skint.
I am avoiding US funds at the mo - I think the market is going sideways and don't trust the exchange rate (of course if this recovered you would be getting a double bonus)
Take a look at www.h-l.co.uk (wealth 150 is a list of recommended funds) They make money on all investments but the advice is worth what you paid for it.
And whatever you do - HOLD YOU NERVE during the bumpy times, I have been through the post 2000 plunge and some fun since then but stayed in and been glad I did. Don't chase the market you will lose (the market already reflects the future expected values, NOT the present)

[backgetyou]

Put 7k in stocks isa every year (if you have it spare). drip feed over the year if you want to (pound cost averaging), but this usually means you miss out on discounts, which can save as much as 5% and are therefore worth it.
Of course - you should keep 6 months expenses in cash and easily accessible, you want to cash these funds in when you want to, not when you are skint.
I am avoiding US funds at the mo - I think the market is going sideways and don't trust the exchange rate (of course if this recovered you would be getting a double bonus)
Take a look at www.h-l.co.uk (wealth 150 is a list of recommended funds) They make money on all investments but the advice is worth what you paid for it.
And whatever you do - HOLD YOU NERVE during the bumpy times, I have been through the post 2000 plunge and some fun since then but stayed in and been glad I did. Don't chase the market you will lose (the market already reflects the future expected values, NOT the present)

Gee you guys scare me, first its 'we dont have any money what are we going do help me get a job' now its stick your money in stock and make a fortune. Only invest what you can afford to lose, if you want safe money then you can go for bonds or ISA but you will make didly squat but if thats what you're aiming for then do it. To make proper money you have to look at the risk, decide if you can afford the risk and if you can if you can be bothered or are you happy as you are driving your 3 series BMW and telling everyone you are a 'director'.

For those that dont know what they are doing and are bored crapless in their role as 'senior tape loader' then try this https://www.share.com/webp/practice_account.htm its free and you can gamble £15,000 of pretend money till you know what you're doing.