Investments down again.

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If you have money in the stock-market that you may need to use in the near future, then cut your loses and bale out is not a bad advice.

If however you have money that you do not need for the foreseeable future - then hang in there is a good advice, in the long term you will probably not regret it.

My opinion, anyway...
 
If you have money in the stock-market that you may need to use in the near future, then cut your loses and bale out is not a bad advice.

If however you have money that you do not need for the foreseeable future - then hang in there is a good advice, in the long term you will probably not regret it.

My opinion, anyway...

Good points.

It could also be argued that if you need the money in the short term, you have been foolish in having it invested in the market so close to the time you may need it.You could argue that it may have gone up and so remaining invested was not wrong, but in the event that you now have less than you need the decision is always to get out well ahead of time.

Relying on luck over judgement is no way to treat investment in the markets.
 
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?

Yes, like I said before, put your money in a bank in Australia, you will have at the momement 6.00% PA and the principal will be Government backed. Very safe, very much low risk, a very good return considering and it will only get better with time as Australia continues to pull away from a damaged Europe & US, meaning you will more than likely make on the exchange rate when you bring the money back to the UK.
 
Yes, like I said before, put your money in a bank in Australia, you will have at the momement 6.00% PA and the principal will be Government backed. Very safe, very much low risk, a very good return considering and it will only get better with time as Australia continues to pull away from a damaged Europe & US, meaning you will more than likely make on the exchange rate when you bring the money back to the UK.

The carry trade can be good, but still has risks. Basically betting on exchange and interest rates.

Currency Carry Trade Definition
 
You wont need to bet/gamble much at all on Australian interest rates they are very stable indeed. The exchange rate will need watching, but again it is very unlikely indeed that it will drop significantly against the USD or Euro for any length of time over the next two years at least. It is a very safe investment IMHO. I'm doing it.

If anybody is seriosly looking at this I don't mind sharing the bank managers details that I deal with. A true gentleman for which almost nothing is too much - he even gave me an AUD $ 200 or so loan (can't quite remember) for a few weeks at no interest, as a favour to tie me over till the term deposit came off. How many banks/bank managers will do that for you these days!
 
My thoughts are buy into a falling Market and sell into a rising one. But bear in mind no-one will ever call the bottom or top. Most people buy into a rising one and panic and sell into a falling one.
When selling don't be greedy and be content. Holding too long is dangerous. Don't fall in love with your stocks.

All easier said than done.
 
...Most people buy into a rising one and panic and sell into a falling one...

Which is a very reciprocal situation.... or self-fulfilling prophesy.
 
Sounds like some good investment pointers but most if not all of them hinge on speculation/luck. By all rights they must, otherwise it would be considered insider trading thus illegal.

I myself like to invest in family, my business, and tangible items I have physical access to. Let's take for example "Gold" the price you will pay for the stock is more than you would get for the metal if it were sold in the private market. That should tell you something right there, stocks are not worth their weight in gold, and an items value is based on what someone else is willing to pay for it.... Nothing more and nothing less.
 
Sounds like some good investment pointers but most if not all of them hinge on speculation/luck. By all rights they must, otherwise it would be considered insider trading thus illegal.

I myself like to invest in family, my business, and tangible items I have physical access to. Let's take for example "Gold" the price you will pay for the stock is more than you would get for the metal if it were sold in the private market. That should tell you something right there, stocks are not worth their weight in gold, and an items value is based on what someone else is willing to pay for it.... Nothing more and nothing less.

You are right to a degree, but to my way of thinking, mostly wrong:)

Gold, for example has an intrinsic value. Limited supply, and a real demand which increases with global uncertainty. However, buying gold is a one trick pony. You don't actually own the real gold (VAT complicates that), and its purely a capital gain/loss gamble.

Stocks and equities also have an intrinsic value, based on the base value of the business concerned. The add the performance of the business and the reward or dividend the owners take out of that business. Then add or subtract a future performance element.

There is, of course, a large element of luck, but risk can be mitigated by research, judgement and resisting greed.

As you said, everything is only worth what someone will pay, entirely correct. The trick is to work that out slightly better than others.
 
@ colin

I think SELLC is mostly right. Its all speculation otherwise how do you explain a sound company like Tesco losing 10% of its share value in 6 days. A

IMHO if it was really based on what you wrote i.e.

''Stocks and equities also have an intrinsic value, based on the base value of the business concerned. The add the performance of the business and the reward or dividend the owners take out of that business. Then add or subtract a future performance element''

Tesco's share price shouldnt have lost 10% over 6 days because I do not see that the real value of Tesco or its forecasts have fallen 10% in 6 days.

I know it is rather simplistic but I hope you get what I am saying.
 
Normally stocks like Tesco's are a safe haven in difficult times, people always have to eat, bit like undertakers, always a steady business :D
 
@ artyman

Exactly! so why did its share price fall in line with all the other stocks? = Speculation and also manipulatuion by the MMs!
 
REDC220 , so right that we should insist on British made goods. Where in the U.K. is Mercedes factory , i would like to place an order.:confused:
 
The price of stocks has often got little to do with the performance of the company concerned.

Tesco fell because everything fell...did Tesco, or any other company for that matter, suddenly perform worse in the past week? The value of the shares may have fallen...so tough for investors, but dividends will not be effected, so good for those deriving their income from those shares.

If your requirement is for income, then buy shares...safer than relying on interest rates.
 
@ colin

I think SELLC is mostly right. Its all speculation otherwise how do you explain a sound company like Tesco losing 10% of its share value in 6 days. A

IMHO if it was really based on what you wrote i.e.

''Stocks and equities also have an intrinsic value, based on the base value of the business concerned. The add the performance of the business and the reward or dividend the owners take out of that business. Then add or subtract a future performance element''

Tesco's share price shouldnt have lost 10% over 6 days because I do not see that the real value of Tesco or its forecasts have fallen 10% in 6 days.

I know it is rather simplistic but I hope you get what I am saying.

You miss the point (and yes your viewpoint is rather simplistic, sorry). The value of the shares may have fallen, but will that effect the dividend?
 
There is one main rule that I adhere to:-

Buy when everybody else is selling and sell when everybody else is buying.
The trick is spotting these moments and acting on them.
 
@ colin

I think SELLC is mostly right. Its all speculation otherwise how do you explain a sound company like Tesco losing 10% of its share value in 6 days. A

IMHO if it was really based on what you wrote i.e.

''Stocks and equities also have an intrinsic value, based on the base value of the business concerned. The add the performance of the business and the reward or dividend the owners take out of that business. Then add or subtract a future performance element''

Tesco's share price shouldnt have lost 10% over 6 days because I do not see that the real value of Tesco or its forecasts have fallen 10% in 6 days.

I know it is rather simplistic but I hope you get what I am saying.

Entirely agree. Caught up in the general panic, Tesco are a good and profitable business and will probably recover as sanity takes over. Their intrinsic value has changed little, the performance element has gone all pessimistic. Panicky people don't react with logic & reason.
 
There is one main rule that I adhere to:-

Buy when everybody else is selling and sell when everybody else is buying.
The trick is spotting these moments and acting on them.

Sound strategy. Best to consult next weeks FT for reassurance, though.:thumb:
 
You miss the point (and yes your viewpoint is rather simplistic, sorry). The value of the shares may have fallen, but will that effect the dividend?

Before you jump in, can you at least read and understand what is being discussed cause from your reply to me it shows you havent got a clue and please I am not intereseted in debating anything with you. I clearly address the people I wish to speak to so please leave a brotha alone.

cheers.
 

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