Investments down again.

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The only surprising thing in the current market "correction" all this is that has taken so long to happen but it is not a "natural" correction. We live in interesting times

There is pressure on the sell side but the bulk of this "crisis" has been manufactured by the ECB, to be more precise Trichet, who is alleged to have wound everybody up with scary statements for the express purpose of scaring EU states, in particular Germany, into supporting yet another ECB bond buying spree but this time for Spain and Italy.

Look on the positive side: markets always go way too low following such events especially if (i) the retail investors (who depressingly always tend to go in when markets are on the way up or already too high high and then panic sell/redeem funds when they dip) start to bail out (they have) and (ii) short sellers pitch in (they have)

All of the professional money has largely already been "adjusted" or hedged out appropriately because they expect a sudden bounce, dead cat or otherwise.

You can tell that because there is already an ocean of cash just waiting for the bottom, so much that it has resulted in some banks and custodians imposing negative interest (i.e. a charge) for holding it:

http://www.ft.com/intl/cms/00487faa-beba-11e0-a36b-00144feabdc0.pdf

So the Satch Vulture Fund is already hovering, ready to hopefully pick off cheap stocks in decent companies with decent fundaments. (I will tell you after I have purchased them.....:)
 
Exactly - how do we compete with this?..

Ban imports from China and India.

It's not like they buy anything off us.

When Ireland was going down the pan it was reported that Ireland spends more on UK goods than China, Brazil, Russia and India combined.

It's all one way traffic and how can a UK company compete on a fair basis when in India employees are paid virtullly nothing and if one dies on the job it does not matter?
 
Ban imports from China and India.

It's not like they buy anything off us.

When Ireland was going down the pan it was reported that Ireland spends more on UK goods than China, Brazil, Russia and India combined.

It's all one way traffic and how can a UK company compete on a fair basis when in India employees are paid virtullly nothing and if one dies on the job it does not matter?

The problem, most aptly displayed by the USA, is that the biggest loser if barriers were put up to goods from China, would be the US companies
manufacturing in China. They have them by the proverbials.
 
China's single largest export by quite some margin is US Dollars.

Specifically buying US goverment bonds.

China are effectively currently supporting the US and pretty much the global economies.

Stopping buying goods from China would be catastrophic. It would make the current financial crisis look like a blip.

India and China also spend Billions of $ importing goods, services and technologies from Europe and America.
 
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Now look what you have started......down today.....up tomorrow.....down the day after......up....

Confidence and/or the lack of it......most household incomes and the economy generally are not good and it will be a long haul to what we might regard as ''normal'' but things in reality do not change overnight only perceptions.

We all have to ''hang in there''. Keep pedalling.

Mic

I might have started it Mic (See post 1 :() but it didn't take long for the thread creep to come in.

Anybody got a sensible answer for the OP?
 
I also want to clear up a misconception about German manufacturing.

When I make factory visits to Shaghai (Jaiding) and Foshan in Guangdon (a little north of Hong Kong) I'm driven past factory after factory with all the global manufacturers names emblazoned all over them.

Infact, the two factories next to one of my regular vists belong to ZF Gearboxes and the company that makes the gears that are the internals of ZF gearboxes.

Most of the German sanitary Ceramic manufacturers have their core planst there also.

Made in Germany can mean as little as the components assembled there that have been fabricated in China.

Red Bull.....Red Bull don't even make anything - they are a marketing company buying a product from Thailand originaly known as Krating Daeng, repacking it and marketing it to the western world...outstanding business model.
 
I might have started it Mic (See post 1 :() but it didn't take long for the thread creep to come in.

Anybody got a sensible answer for the OP?


I had forgotten what the thread was originally about Druk :doh:

if i were you i would put my money in gold and silver, it's a safe haven in these turbulant times and as countries continue to devalue there currencies the price will steadily rise.
silver will be $80-$100 per ounce this time next year and gold will be $2000-$3000 per ounce. precious metals are the only sure thing out there just now.
 
Ban imports from China and India.

It's not like they buy anything off us.

When Ireland was going down the pan it was reported that Ireland spends more on UK goods than China, Brazil, Russia and India combined.

It's all one way traffic and how can a UK company compete on a fair basis when in India employees are paid virtullly nothing and if one dies on the job it does not matter?


it isn't that we are keeping china in clover by buying the products that they manufacture, in fact the opposite is true. they are keeping the western world in clover by manufacturing the things we want so cheaply.
imagine we had to pay 4 or 5 times as much for almost everything we buy.
 
I might have started it Mic (See post 1 :() but it didn't take long for the thread creep to come in.

Anybody got a sensible answer for the OP?

Spend it. It's not going to be worth much tomorrow. Have some fun for goodness sake.

Either that or keep it under your mattress. ;)
 
I also want to clear up a misconception about German manufacturing.

Chasing low cost manufacturing of the commodity stuff. When (as is happening already) China gets too expensive, the companies will move to another low cost manufacturing country.

Where the Germans seems to be a bit clever than us is they do their utmost to protect the knowledge and design skills and the trick manufacturing and keep that at home. so they have a viable business going forward.

Which is why Chinese Government/businesses like COMAC and AVIC are busy buying up the western companies with the knowledge. You can only sell the comapny once and then its terminal decline is assured.
 
it isn't that we are keeping china in clover by buying the products that they manufacture, in fact the opposite is true. they are keeping the western world in clover by manufacturing the things we want so cheaply.
imagine we had to pay 4 or 5 times as much for almost everything we buy.

But when nobody has got a job and our country is bankrupt, it won't really matter how cheap imports are...

We need to stop importing and start producing again, it's our only hope.
 
But when nobody has got a job and our country is bankrupt, it won't really matter how cheap imports are...

We need to stop importing and start producing again, it's our only hope.

Are you suffering from depression ?
 
Are you suffering from depression ?

I am depressed when I drive around places like Birmingham and see all the factories - and I mean all - either being knocked down or being used as self storage joints.

How long can we as a country continue consuming far more than we produce?
 
But when nobody has got a job and our country is bankrupt, it won't really matter how cheap imports are...

We need to stop importing and start producing again, it's our only hope.


eventually almost all jobs will be carried out by machines, as technoligy advances the job market shrinks.
 
I might have started it Mic (See post 1 :() but it didn't take long for the thread creep to come in.

Anybody got a sensible answer for the OP?

Unless you are within three to five years of NEEDING to convert equities into cash for whatever reason stick with equities in a mixed portfolio whether or not that is in a pension fund or otherwise. Historically any arbitrary reasonable period of time will demonstrate that equities have outperformed all other financial instruments.
It is important that you have a decent window of time to allow you to choose your moment for cashing equities but they are liquid, should generate both capital growth and income and cost virtually nothing to maintain.
There will always be those in the UK who like property but in reality for small private investors residential property, other than the one you live in, is a poor investment. Some will point to the extraordinary capital growth in the first half of the last decade but that was unusual and very few were quick enough or smart enough to liquidate in 2007.
My business is property but I am a reluctant landlord.
Equities is the only sensible long term investment.

Mic
 
MicB said:
Unless you are within three to five years of NEEDING to convert equities into cash for whatever reason stick with equities in a mixed portfolio whether or not that is in a pension fund or otherwise. Historically any arbitrary reasonable period of time will demonstrate that equities have outperformed all other financial instruments.
It is important that you have a decent window of time to allow you to choose your moment for cashing equities but they are liquid, should generate both capital growth and income and cost virtually nothing to maintain.
There will always be those in the UK who like property but in reality for small private investors residential property, other than the one you live in, is a poor investment. Some will point to the extraordinary capital growth in the first half of the last decade but that was unusual and very few were quick enough or smart enough to liquidate in 2007.
My business is property but I am a reluctant landlord.
Equities is the only sensible long term investment.

Mic

Having worked in a stock brokers office I picked up a few things and that is correct over say a long term view but in the medium to short term volatility can significantly alter ones valuation. Perhaps Derek needs to speak to an ifa and discuss such things as appetite for risk and when if ever he would realise the funds
 
In answer to the original question..
:( So the Euro, Dollar et al seem in freefall. Pundits are predicting global financial implosion. Is this the time to bale out of the stockmarket...

NO.






When it's all doom and gloom.....it's time to buy.
 
You can't time the market.

Some people on here have already said they bought while the market was "good" and now want to get out. Why?

Now is the time to buy. Sure, it may fall more, so what, unless you need the money short term (in which case you should be nowhere near the market), buy now. When it starts to go up you will, probably, not be able to buy at today's prices, but at a higher price.
 

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