Reply to: investments

[unemployed]

Buying up land in northen Cyprus safe as uk houses.

[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 !

[Gonzo]

go contrarian - you know it makes sense...

No, I won't.

[oracleslave]

Good plan.

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

Is that contrarian? Doomed!

[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.

[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.

[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]

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.

[Pickle2]

Any spare penny goes striaght to the mortgage these days, (the cash can come back out as quick as it went in), before the fixed rate is up in 20 months or so...

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.

[ASB]

Heck if you knew you could get a 10% yield for life with the prospect of capital gains then that isn't a bad deal now is it?

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

[DimPrawn]

go contrarian - you know it makes sense...

Good plan.

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

[ratewhore]

go contrarian - you know it makes sense...

[Fred Bloggs]

Yes, the market may fall further but longer term it will recover, and in the meantime I'll be happy with my high yield portfolio.

Good luck. Short term fluctuation means nothing. In the meantime you get about 8% p.a. return, virtually guaranteed to increase in time. And at the worst realistic case I think you'll make 100% capital gain in 5 years. The case only falls down if you believe the end of capitalism had dawned. If that's the case, losing a few quid on bank stock is the least of your worries!

[lukemg]

Fidelity South East Asia.
Or Allianz RCM BRIC stars (Brazil, Russia, India China)
This is on the back of substantial 'foundation' funds in UK and Europe since they are likely to be more volatile and risky I would not advise them as a large percentage of a portfolio. Don't see much value/potential in UK + Europe shares currently, although a punt on banking shares which have been marked down viciously might be worth a go.

[DimPrawn]

'Buy when others are fearful and sell when others are greedy'

You might heard that before.

My next ISA in April is going into high yielding bank shares - RBS and LLOY primarily. Heck if you knew you could get a 10% yield for life with the prospect of capital gains then that isn't a bad deal now is it?

Bank shares have come off some 40% since le crunch reared its ugly head. A lot of the bad news is factored in. Yes, the market may fall further but longer term it will recover, and in the meantime I'll be happy with my high yield portfolio.

Not that I have one yet mind you.

Each to their own.

Good luck.