Attitude to Fixed Income in 2014

[BlasterBates]

Never put your eggs in one basket.

Always invest in stuff that is out. If property has gone up a lot then it's more likely to go down.

Gold has gone down and generallly mining shares are well down, emerging markets look a lot cheaper than the US and Europe.

I would steer clear of bonds interest rates can only go up which will always push bonds down, careful about European and US stocks, perhaps go for rock solid high dividend stuff such as Telco. and only buy property if the sums add up on the rental, i.e. you make money even if it goes down.

I would adopt some caution at the moment. Perhaps invest over time gradually always hold enough money back for the next crash, so you can pile in and make a killing.

[Gittins Gal]

Never put your eggs in one basket.

Always invest in stuff that is out. If property has gone up a lot then it's more likely to go down.

Gold has gone down and generallly mining shares are well down, emerging markets look a lot cheaper than the US and Europe.

I would steer clear of bonds interest rates can only go up which will always push bonds down, careful about European and US stocks, perhaps go for rock solid high dividend stuff such as Telco. and only buy property if the sumys add up on the rental, i.e. you make money even if it goes down.

I would adopt some caution at the moment. Perhaps invest over time gradually always hold enough money back for the next crash, so you can pile in and make a killing.

Some wise words there, I'm sure...

[Gittins Gal]

Don't think I have ever said I think it's risk free. I certainly do not think it is. There is no such thing as a risk free investment.



I had. I know what happened. And I am still invested in the markets.

.

Trying to become quickly richy through investing is a path that is strewn with failure. Becoming slowly richer is a better strategy.



The problem with your analysis is that you have constructed a positive scenario in your mind. I could just as easily construct a negative scenario. It goes like this:

You borrowed 250k and put down a 100k deposit, to purchase a 350k BTL in an up-and-coming part of London. However the glut in the market of similar BTL properties in the area ( caused by a rapid downsizing of the financial work force in London ) meant that it was only let out 60% of the time during the first decade. At a rate that was just below the break-even required to cover the mortgage interest.

The UKIP government in the early 20's had succeeded in forcing the repatriation of a large number of recent migrants and that coupled with the improved transport into London meaning that more people could simply travel in from the booming home-counties ( prices up 60% a year! ) meant that the area you had invested in was particularly badly over-supplied - and never really recovered during the 30 years you held the property.

Problems were exacerbated when Labour introduced a "Rental Cap", along with other measures to "Protect the rights of renters" which limited the amount of income you could generate.

And years latter you would swear that your gall-stones were caused by the stresses of dealing with one particularly awful bunch of tenants that had you running round after their every whim. They didn't even pay on time!

The local property prices slumped as the area de-gentrified, run-down neighbouring properties badly effected the price and the ability to sell-out at what would have been a reasonable, but still containable loss.

As inflation took hold the Bank of England put up interest rates that the lending bank had no qualms about passing on to you. The "Rent Cap" increased your losses, although inflation gave you the impression your asset was finally increasing in value.

The final straw was the 2034 Labour governments introduction of the "Right to buy" for long term tenants. Meaning you were forced to part company with the property, that you'd struggled to hold onto for 20 years, at a time not of your choosing. Of course the tenants choose to force your hand during the 2035 property slump caused by the large number of Baby-Boomers exiting the market.
Th mi benus



Me too. Enjoy.

Good grief! It deserves a reply but I may have to wait until the morning!

[DimPrawn]

Better than a lottery win - owning property

It could be you!

'Property millionaires club' to reach 500,000 this year - Telegraph

It certainly isn't AtW

Sadly, I put my last £1000 into BitCoins in 2010, which means I've only got £2,000,000 now....

[Unix]

Never put your eggs in one basket.

Always invest in stuff that is out. If property has gone up a lot then it's more likely to go down.