stock market crash

[northernladuk]

AMD is overvalued. The company is on the ropes, their products are losing out to their competitors - quite likely to die when this tech bubble pops.

Well it's 10% down on what it was yesterday

[AtW]

AMD is overvalued. The company is on the ropes, their products are losing out to their competitors - quite likely to die when this tech bubble pops.

What was the last Intel and AMD CPUs that you've personally tested for performance/watt?

[GreenMirror]

Nasdaq moves through the 200 day moving average. Seatbelts on people.

Will house prices follow?

[scooterscot]

Will house prices follow?

Yes and no. I think we'll see a repeat of 2008 only larger. For house prices, 2008 was weird, you see they actually shot up in value because people put more value on housing than traditional markets. Just like gold. Money flowed into London and other cities around the world, here Munich too, it is a massive bubble pumped up by the rich. The little people, you and me, enjoyed the pump of value believing our 2-bed apartment really is worth £0.5million despite costing 1/5 of that to build. The reality is much different. Like 2008 only this time something similar will happen to house prices but then it turns ugly on the way and quickly (is my bet), the value of housing does not go up as people realise there's too much debt. Then they stop buying. The lack of buyers has already began to show its face through the falling share prices of estate agents. This is a warning. This was the trigger that led me to sell my Edinburgh place amongst other reasons.

Until earnings in the UK match a 3:1 income ratio on housing, the system is going to receive a correction one way or another. BoE should have increased interest rates 10 years ago and averted the worst of what's to come. Instead central banks have made a salvageable situation worse and will be forced to increase interest rates in an uncontrollable fashion in a wild attempt to rain in inflation. I don't believe inflation really is 2-3% as advertised. Much closer to 10%. Rail fares, energy, the price moves far faster than the government lets on.

What can you do? Do not have DEBT!! Get rid of it now. Would even go as far to say the mortgage as well. In the years ahead those without debt will be seen as the new 'upper class'.

[stonehenge]

Where I live, prices are not much higher than they were before the financial crisis.

Example. House down the road sold for £375k in 2006. Came back on the market in 2008, asking £400k, and sold for £350k.

Currently on the market for £425k and not shifting after many months.

[TwoWolves]

What was the last Intel and AMD CPUs that you've personally tested for performance/watt?

I didn't say there was anything wrong with their product, Intel is destroying them nevertheless.

However, there have been technical issues with their graphics drivers and CPU heat. Most are fixed now but those customers are not coming back.

[scooterscot]

Currently on the market for £425k and not shifting after many months.

So their options are to sell slash the price before the market does it for them. Or dig deep and hold for the next 20 years.

[stonehenge]

So their options are to sell slash the price before the market does it for them. Or dig deep and hold for the next 20 years.

I suspect, to shift it, they'd have to accept close to what it sold for in 2006.

Is it only London where prices have doubled in the past 10 years?

[scooterscot]

Edinburgh as well. my apartment in 08 would be around £270k, had folks wanting to pay almost £450k today. Bonkers. And they'd have offered more if not for the new stamp duty rules in Scotland. Thankfully it was a cash buyer who won in the end. Would have otherwise felt bad knowing someone is mortgaging themselves to the limit.

[Hobosapien]

Until earnings in the UK match a 3:1 income ratio on housing, the system is going to receive a correction one way or another. BoE should have increased interest rates 10 years ago and averted the worst of what's to come. Instead central banks have made a salvageable situation worse and will be forced to increase interest rates in an uncontrollable fashion in a wild attempt to rain in inflation. I don't believe inflation really is 2-3% as advertised. Much closer to 10%. Rail fares, energy, the price moves far faster than the government lets on.

What can you do? Do not have DEBT!! Get rid of it now. Would even go as far to say the mortgage as well. In the years ahead those without debt will be seen as the new 'upper class'.

Alternatively, they may continue what they are doing and let central banks around the world control the devaluation of the respective currencies in an orderly fashion, where inflation erodes the debt over time.

i.e. inflation remains high, wage inflation rises to ensure people don't starve over the price of bread, interest rates remain subdued, currency devalues as it always has.

The process may speed up due to globalisation and currency/trade wars where nations such as USA and China try to remain on top, but no one sovereign state will want to break away from the current path at risk of being the odd one out and risking destruction in terms of the global financial market.

I think I'll continue to spread the risk.