FTSE falls again

Discussion in 'Insurance & Finance' started by Palfrem, Aug 18, 2011.

  1. Palfrem

    Palfrem Hardcore MB Enthusiast

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    So it's another day of huge losses on the world markets.

    I'm by no means a regular trader, I just have a few stocks and shares here and there as a long term saving.

    At what point does it become "very cheap" to be buying shares again?

    I know this is the $64,000 question, but the performance of many companies is way ahead of their perceived share value and there has to be a point where it's time to buy.

    Is this just lemming like hysteria, computer programmed selling, shorting or will the price start to reflect value soon when good sense has returned.

    Any comments chaps?
     
  2. Red C220

    Red C220 Hardcore MB Enthusiast

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    Honestly, no one really "Knows".

    At best the market is irrational, at it's worst it is criminal.

    We are also in one of the most strange monetary periods in developed economic history where free market democracy has caught up with itself and bitten it's own back side.

    I'm not quite sure where we are going now, one thing I can tell you as a business owner (and not a stock trader) is we are not at the bottom yet.

    It is going to get worse. Now if I could only work out what "It" is I'd be loaded.
     
  3. hawk20

    hawk20 Hardcore MB Enthusiast

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    In May 1999 sold my shares when Footsie was at 6,900. That is 12 years with no growth. Now allow for inflation and it should be over 10,000 now just to have given zero real growth. We are exporting many of our jobs to China and the Far East in the fond belief that 'free' trade is good for us -even when China rigs the exchange rate.

    And if Gold today had kept pace with inflation it would be 2500 dollars per ounce and not 1700 or so.

    Indexed linked bonds are the only sensible buy in a world where all are printing bucketfulls of money to prop up economies which are being savaged by goods from the Far East.

    Nat Savings do some indexed bonds. Stock market has many others.

    Only Financial Advisers and fools believe that markets always trend upwards long term. Not long ago the Nickkei was at 12,500. Couple of days ago it was 8,750. Now go back to the 80's and it was at over 36,000. Yes, it really was.
     
    Last edited: Aug 21, 2011
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  4. st13phil

    st13phil MB Club Veteran

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    Perhaps if people spent more time worrying about dividend income than they did on gambling on the value of stocks the world may be a more stable place?
     
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  5. Sp!ke

    Sp!ke Administrator Staff Member

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    The problem is most peoples pension fund is being gambled away on the money markets and you dont have much of a choice.

    If I did have a choice I would have asked to move my pension pot out of the markets and into some kind of tracker or something stable for the time being. Instread I just keep getting email alerts saying my fund has lost 5% of its value every other week or so.
     
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  6. The G.F.P

    The G.F.P Hardcore MB Enthusiast

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    gold kruggerands is the future

    i bought 10 for £980 each this may now if i sold them back to the company they are paying £1,135.02 (thats a £155 profit per coin = £1,550 in 4 months)

    BUT

    on ebay they currently selling for £1,400 to £1,600 (thats a £400 minimum profit per coin = £4,200 in 4 months)

    better than spending it on the CL55 that i wanted which would now be worth about £1,000 ish less IF i could sell it

    worse thing is i had the money to buy these 4 years ago when £500 each!

    p.s in case they are any bad people watching all of the above is a damn lie and i actually bought chocolate coins

    p.p.s ive eaten all the chocolate

    [​IMG]

    33% rise in 6 months (thats 24 carat and kruggerands are 22 carat)


    [​IMG]

    49% rise in the last year


    [​IMG]

    96% rise in the last two years

    and the long term bit ....

    [​IMG]

    a 568% rise in 10 years!

    now now ladies please no crying in front of your monitors
     
    Last edited: Aug 21, 2011
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  7. hawk20

    hawk20 Hardcore MB Enthusiast

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    Pity you don't show 1980 to today plotted against inflation when you would see that Gold has failed even to earn zero real (above inflation). And it pays no dividends remember.

    Gold does well when the unexpected happens. But we are not good at predicting the unexpected are we?:) Nobody would be that surprised if Gold fell back a long way over the next ten years. It is as good a gamble as Stoke City I guess.
     
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  8. Stratman

    Stratman Hardcore MB Enthusiast

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    The FTSE is up today. Presumably all the experts who were in the 'sell sell sell' camp two days ago have changed what passes for their minds.

    Again.
     
  9. OP
    OP
    Palfrem

    Palfrem Hardcore MB Enthusiast

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    So it is actually lemmings syndrome then is it stratman?
     
  10. Igurisu

    Igurisu Hardcore MB Enthusiast

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    My thoughts exactly, difficult to do anything but watch the pension fund jump up and down in value. I also hate the fact that we are at the mercy of the market conditions at retirement time. It can make so much difference for the rest of our pensionable life, whether the market is on a high or a low at the time of maturity.
     
  11. snoop51

    snoop51 Hardcore MB Enthusiast

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    :doh::(:(:( Just checked my pension. I had been putting it off but you tweaked my curiosity, you swine. Where's the rope?:wallbash:
     
  12. Dieselman

    Dieselman Banned

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    I hear wind turbines make good gallows...
     
  13. davethemus

    davethemus Hardcore MB Enthusiast

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    a paper bug then?
     
  14. snoop51

    snoop51 Hardcore MB Enthusiast

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    We haven't put any up yet, the pylons outside are looking good for it though!:D
     
  15. Colin_b

    Colin_b Hardcore MB Enthusiast

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    Certainly an element of that. Self fulfilling, of course.
     
  16. terrymcg

    terrymcg Hardcore MB Enthusiast

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    Oh well, look on the bright side chaps. The FTSE may have fallen, at least petrol is still on the up!
     
  17. Colin_b

    Colin_b Hardcore MB Enthusiast

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    Crude oil down, petrol up. Someone is doing OK, and its not me.[​IMG]
     
  18. The G.F.P

    The G.F.P Hardcore MB Enthusiast

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    the 30 year growth

    [​IMG]

    still 327%

    id rather have coins that i can sell straight away that in 6 months will have made £5k profit than dabble in the markets where my mate has been dabbling for a couple of years and is £10k down then up a bit then down a bit
     
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  19. renault12ts

    renault12ts MB Club Veteran

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    Are you retiring soon?

    No...what's your worry?

    Yes...fire your adviser for leaving you exposed when you should be largely in cash.
     
  20. davethemus

    davethemus Hardcore MB Enthusiast

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    it's mostly ideological. some people have a perverse 'markets know best' attitude.

    it's only the last 30 years that have been held hostage by the fiat experiment and look at where that has got us. the 3000 years before the only real currency has been precious metals.
     
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