Housing crash unlikely - Boom

[bogeyman]

And live in a shoe box or pay £2000 a month rent and risk it on the stock market and currency market?

My tenant profile to a tee.

[BlasterBates]

Could be me

No pain no gain.

Its a bit like going to Las Vegas and sticking your savings on red.

[bogeyman]

Its a bit like going to Las Vegas and sticking your savings on red.

It's always an option - better than suicide.

[IR35 Avoider]

When did the FTSE go to 0?

The majority of stock-markets that have ever existed have gone to zero and stayed there. (Think Russia in the 19th century, as one example.)

Though I agree for this to happen in the UK now is hardly worth worrying about. It's not impossible, but it would take an event of such magnitude that the size of your portfolio will be the least of your worries.

[tim123]

Already sold actually , and now shoved into highly dubious shares.

I kept my sale proceeds in cash, and TBH I'm getting slightly worried about that. If one of the big banks goes down, we're in for a blood bath. Perhaps I should go out and buy a repo?

And I found the rental market quite easy, but I'm nowhere near London.

tim

[Cyberman]

Already sold actually , and now shoved into highly dubious shares. I work overseqs so it was rented and the rental market was getting difficult.

Actually shares are interesting, my worst share is about 80% down (airline) and my best share is getting about 160% in profit (mining company). All evens up though. Hardly any banks .

Interestingly the dropping of the pound is creating a lot of "pound" gains.

Banks worldwide are reducing lending due to the liquidity shortage. This is bound to have a knock-on effect on business growth and people's spending power. This will impact on shares as profits and dividends therefore fall, causing share prices to fall also. Therefore shares at the moment are incredibly risky.

[BlasterBates]

Banks worldwide are reducing lending due to the liquidity shortage. This is bound to have a knock-on effect on business growth and people's spending power. This will impact on shares as profits and dividends therefore fall, causing share prices to fall also. Therefore shares at the moment are incredibly risky.

Yes but that slow down has been priced in already. Shares always price in expectation. That's why it is a good time to buy. Because shares will recover before the recession ends, as the outlook brightens. That is the mistake that mayn private investors make, they wait for a bright outlook, but when that comes share prices are usually then overpriced. At the moment invetsors are in doom and gloom mode. Get in there

[Cyberman]

Yes but that slow down has been priced in already. Shares always price in expectation. That's why it is a good time to buy. Because shares will recover before the recession ends, as the outlook brightens. That is the mistake that mayn private investors make, they wait for a bright outlook, but when that comes share prices are usually then overpriced. At the moment invetsors are in doom and gloom mode. Get in there

We're not in a technical recession yet, but we could well be within a year. Share prices will fall for the next few months as many investors require funds to pay higher mortgages etc. and will withdraw to some extent from the stock market. We are also coming up to that time of the year when the old adage 'sell in May and go away' applies to the market. September/October is historically a good time to buy so it may be worthwhile investing then, but personally I think there are really tough times ahead for borrowers and investing will be the lowest of priorities.