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

[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.

[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)

[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.

[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.

[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.

[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.

[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..

[max]

I don't have any shares , but plan to start investing. I will wait until there is indication that the market is healing , as it is quite bad right now.

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

[BlasterBates]

I don't have any shares , but plan to start investing. I will wait until there is indication that the market is healing , as it is quite bad right now. Either way, investing is the only option if u want to stay above inflation.

I'd like to take advantage of my IT knowledge. Obviously IT workers should make good IT investors. The IT investment market is known for its volatility. However IT workers should be in a good position to spot companies like Facebook , VMware... Tom-Tom is a good choice with the sat-nav market in its highest ... see what i mean ..

Disagree here, in fact you should spread your risk, invest in different sectors. Don't invest in a company just because you like the product, the share price may already be very high. My advice is to subscribe to an invest research newsletter, double check their advice and then invest in the most promising ideas. The key is a spread. If you have 20 shares and one goes completely bust and you make 10% on the rest you still make 5%, and always have money in reserve, when the markets crash you stick some of your reserves in. Investing over time is an important way of reducing risk.

[NickFitz]

oh carp.

http://anmblog.typepad.com/this_is_m...crash-200.html

As far as I can see, all that the linked blog post says is:

1. Some bloke came up with an economic theory based on demographics;
2. A lot of people didn't agree with him but I [the blogger] thought his figures made sense;
3. His figures stopped making sense, but the underlying trend (which was the same as that predicted by virtually any model you care to choose) didn't actually go completely against his theory so I carried on believing;
4. I keep calling him to ask if I'm still supposed to believe in his theory or not, but he won't return my calls.

If a large number of people actually make important decisions on the basis of this kind of gubbins, then yes, doomed

[bellymonster]

I have a Barclays account which did win the Investors Chronicle award this year. Can't comment on BARX as club accounts can't use it but could be quite a useful research tool.

Other free tools are digitallook.com and advfn.com.

I would also advise you read a few copies of Investors Chronicle to give you an idea on what to invest in and why.

[2uk]

I've been a memeber of an investment club for over 10 years now and initially we thought the same about IT experts investing in technology.

We made a packet investing in tech stocks during the tech boom of 2000/2001 and we all thought we were canny investors. Truth of the matter was you could have made money in anything at that time as long as the company was about to launch an online service.

I luckily took my money out and banked a wedge but others in the club lost a stack once the bubble burst.

Have since had pretty good success but again a rising maret sure helps. I don't think a private investor can easily predict the highs and lows but investing in companies you have researched well and believe in will set you in good sted.

Can you recommend me some Investment tool to get me started ? I want one where u can put money in funds as well as pick your own stocks. I know HSBC has one - DirectInvest , Barclays also have one - BARX.

[bellymonster]

I've been a memeber of an investment club for over 10 years now and initially we thought the same about IT experts investing in technology.

We made a packet investing in tech stocks during the tech boom of 2000/2001 and we all thought we were canny investors. Truth of the matter was you could have made money in anything at that time as long as the company was about to launch an online service.

I luckily took my money out and banked a wedge but others in the club lost a stack once the bubble burst.

Have since had pretty good success but again a rising maret sure helps. I don't think a private investor can easily predict the highs and lows but investing in companies you have researched well and believe in will set you in good sted.

[Sockpuppet]

Obviously IT workers should make good IT investors.

I wouldn't be so sure. Investing is part dark art if you ask me.

[2uk]

Yep. You should have paid attention and invested correctly, like wot I did.

I don't have any shares , but plan to start investing. I will wait until there is indication that the market is healing , as it is quite bad right now. Either way, investing is the only option if u want to stay above inflation.

I'd like to take advantage of my IT knowledge. Obviously IT workers should make good IT investors. The IT investment market is known for its volatility. However IT workers should be in a good position to spot companies like Facebook , VMware... Tom-Tom is a good choice with the sat-nav market in its highest ... see what i mean ..