investments

[Fred Bloggs]

buy more UK and Spanish property and get big into Japan.

Far too soon and you know it is. Japan? No, too many burnt fingers there. No thank you.

[scooterscot]

Nope, once your house drops 40% in value, the bank wont let you to take that money back, as the equity you paid off will of disapeared in a magic puff.

So, although you wont owe the bank any more money, they certainly wont let you have it back.

The capital is still seeing increases in value on property prices up here, while the south is sinking. Why is that? Is it because someone somewhere said hang on a mo, is this 2 bed london box really worth 600K!? overpriced overhyped.

The north has not seen a crash for the past 90 years, nor will it in the near future i bet, sensible gains in sensible times.

40% drop indeed!

[Fred Bloggs]

No. But I might think to myself "just how safe is that yield".

Entirely agree. But have you not noticed that some banks are actually increasing dividends rather than cutting? Those obvious risks are why I bought the Jupiter fund rather than single bank stock. Big up for Jupiter too is that they hold banks that were not particularly involved directly in the sub-prime fiasco. They hold a fair bit in cash too at the moment.

[ASB]

But have you not noticed that some banks are actually increasing dividends rather than cutting?

Yes, I have actually. But I've not looked at how they are funding it. If it is coming from reserves (and in some cases it is) then this is simply a return of capital of course, depleting balance sheet strength rather than it arising as a result of any sort of trading profit - most of the clearing banks can probably afford it for a couple of years. Personally I think:-

a) It is probably too soon for bank stocks, I think it is probably still a bit like catching falling knives. Of course it may well be that you have timed it perfectly. Anyway your chosen vehicle is probably going to insulalte you from the worst of any additional fall out.
b) I gave up stock picking about 15 years ago. I've just held since then. Exceptions being some Chinese - but I was way too early in the early/mid '90s. Some emerging markets warrants around the russian debt crisis when everything tanked with the doom and gloom proved a very good call though.

[oracleslave]

Good plan.

Buy banking stocks, buy more UK and Spanish property and get big into Japan.

Is that contrarian? Doomed!

[Gonzo]

go contrarian - you know it makes sense...

No, I won't.

[2uk]

I am divorced so have no money. But I will ask my ex what she plans to do with all my money.

I never understand how people are so careless. Why marry at all ?

They will have to threaten my family before I share my hardearned money with some WOMAN !

[unemployed]

Buying up land in northen Cyprus safe as uk houses.