FTSE-related investments

[Man of Harveys]

I see the stock market is crashing again...what's the NSC financial expertise saying: is it worth cashing my (paltry) mainly FTSE-related investments in now or sitting tight? I could do with the dosh sooner rather than later but it's not that desperate tbh. What's the word NSC? Ta.

 

[bhafc99]

Never try to catch a falling knife, unless you absolutely desperately have to have the money NOW. Any stock market investment should be for the long term, and you should sit back during big falls and big rises and play the long game.

 

[larus]

There's a lot of uncertainty around now. Is this just a blip (the usual panic from the city which then corrects itself over the following few months), of something more deep-rooted?

If you read the financial press/blogs etc, then a lot of people are genuinely worried that debt (individual and government) is out of control, and the bail-outs by the governments are a desperate act which will fail (how can you cure a debt problem with more debt?). A lot of people think that the Euro cannot survive in it's current design, and that there will be debt-default by some of the PIGS. Also, the view is that a lot of the contenantal banks have a high level of exposure to these government detbs.

There is also talk of double-dip recession (and depression), if/when some of these events start to happen. The LIBOR rate has been increasing steadily again for the last few months (the happened before the last crash in 2007/8).

Noone knows, so take the view that you may loose a large chunk of your remaining capital if the worse happens, but you may alos miss out if things pick up again (I think this is unlikely though in the short - medium term).

This is the reason why we need to address the exceses of the last 10 years; we need to reduce our debt and live within our means, even if this upsets the Lefties. The whole social structure of Europe is unsustainable.

 

[adrian29uk]

Capitalism stinks!!

 

[beorhthelm]

im looking at the current drops as a buying oppurtunity. FTSE price is generally based on the future, what earnings will be in 1-3 years, but they like to react irrationally to daily news. coming out of recession, the future earnings will be good so buy now.

 

[withdeanwombat]

There's a lot of uncertainty around now. Is this just a blip (the usual panic from the city which then corrects itself over the following few months), of something more deep-rooted?

If you read the financial press/blogs etc, then a lot of people are genuinely worried that debt (individual and government) is out of control, and the bail-outs by the governments are a desperate act which will fail (how can you cure a debt problem with more debt?). A lot of people think that the Euro cannot survive in it's current design, and that there will be debt-default by some of the PIGS. Also, the view is that a lot of the contenantal banks have a high level of exposure to these government detbs.

There is also talk of double-dip recession (and depression), if/when some of these events start to happen. The LIBOR rate has been increasing steadily again for the last few months (the happened before the last crash in 2007/8).

Noone knows, so take the view that you may loose a large chunk of your remaining capital if the worse happens, but you may alos miss out if things pick up again (I think this is unlikely though in the short - medium term).

This is the reason why we need to address the exceses of the last 10 years; we need to reduce our debt and live within our means, even if this upsets the Lefties. The whole social structure of Europe is unsustainable.

Crikey ! Why did we bother with the shenanigans of a general election when we have a resident sweeping generalist who could have done the job on his own.I visualise Larus strutting around Mussolini like,chin jutting forward -----and wearing his underpants over his trousers.Just what the failing social structure of Europe needs.

Oh,and keep the investment.

 

[Mellotron]

im looking at the current drops as a buying oppurtunity. FTSE price is generally based on the future, what earnings will be in 1-3 years, but they like to react irrationally to daily news. coming out of recession, the future earnings will be good so buy now.

Agreed, a lot of people always look at the market backwards, now is EXACTLY the time to buy.

 

[El Presidente]

Seems to have gone into freefall since Smug and Smugger came to power...

 

[Uncle C]

Agreed, a lot of people always look at the market backwards, now is EXACTLY the time to buy.

Since the Stock Market hit 3000 odd, its rapid climb has been built on fresh air.

There is a second wave of bad debt from loans to the commercial sector about to hit, coupled with rising Sovereign debts. The markets have become bored with Greece and have moved on to Spain.

The FTSE will go below 4000 again.

 

[larus]

Crikey ! Why did we bother with the shenanigans of a general election when we have a resident sweeping generalist who could have done the job on his own.I visualise Larus strutting around Mussolini like,chin jutting forward -----and wearing his underpants over his trousers.Just what the failing social structure of Europe needs.

Oh,and keep the investment.

Oh dear; what a prize w***er you are.

Which part offends your delicate left-wing position?

The Euro?
The 'bail-out' of Greece is only enough for about 2 years. Then do some research on Spain; unemployment of 20%, etc, etc.

Social costs in Europe?
The welfare/pensions/health liabilities are a ticking time-bomb. The population is aging; so who's going to pay for all this in the future, with more older people and less of working age.

Debt?
I suppose you think there's not a debt crisis in the western world. OK Einstein; whatever :US:.

 

[Bigtomfu]

If you are holding something akin to a FTSE ETF then look to hold - irrespective of when you got in, as someone mentions above never look to catch a falling knife.

If you hold single line equities then maybe spend a little time analysing the timings of each purchase and outlook for that specific company.

However if you hold a fund with a high asset allocation to FTSE equities (or general global equity exposure) I would be inclined to look at the managers past performance through volatility and then act accordingly.

 

[King Kong]

Definitely sit it out, as someone said trying to catch a falling knife can be very regretful.

 

[withdeanwombat]

Oh dear; what a prize w***er you are.

Which part offends your delicate left-wing position?

The Euro?
The 'bail-out' of Greece is only enough for about 2 years. Then do some research on Spain; unemployment of 20%, etc, etc.

Social costs in Europe?
The welfare/pensions/health liabilities are a ticking time-bomb. The population is aging; so who's going to pay for all this in the future, with more older people and less of working age.

Debt?
I suppose you think there's not a debt crisis in the western world. OK Einstein; whatever :US:.

Further proof,methinks,though I have to agree with the first bit.Everything I do is worth a prize.

 

[cunning fergus]

Markets are awash with significant currency bets against the Euro and this is not good news for the EU and associated markets (like FTSE). Despite this the Debt is so bad in the UK that sterling is still being out performed by the euro and dollar, which will mean inflation here will continue to rise due to cost of imports and not least oil.

EU Govts are looking panic stricken (as per Germany's recent irrational ban on short selling) in the face of market demands for action against EU sovereign debt and EU Govts are seemingly becoming disconnected to the contrasting political demands of their electorates (against cuts) so a summer of strikes and unrest could be all part of the fall-out.

More specifically leading politicans in Germany are becoming increasingly unpopular because of the bail out of weaker EU states. In contrast politicians in those countries having to make swingeing cuts will be unpopular because the cuts will be associated with German demands.

North Korea giving South Korea the 'come on then' is not going to help in Asia particularly with China sitting quietly on the sidelines.

Still the sun is out.............

 

[simmo]

Markets are awash with significant currency bets against the Euro and this is not good news for the EU and associated markets (like FTSE). Despite this the Debt is so bad in the UK that sterling is still being out performed by the euro and dollar, which will mean inflation here will continue to rise due to cost of imports and not least oil.

EU Govts are looking panic stricken (as per Germany's recent irrational ban on short selling) in the face of market demands for action against EU sovereign debt and EU Govts are seemingly becoming disconnected to the contrasting political demands of their electorates (against cuts) so a summer of strikes and unrest could be all part of the fall-out.

More specifically leading politicans in Germany are becoming increasingly unpopular because of the bail out of weaker EU states. In contrast politicians in those countries having to make swingeing cuts will be unpopular because the cuts will be associated with German demands.

North Korea giving South Korea the 'come on then' is not going to help in Asia particularly with China sitting quietly on the sidelines.

Still the sun is out.............

This is going to put real pressure on the Euro itself. It is creaking at the seams, it would look like the more fiscally sound countries i.e Germany, possibly France are going to have to bail out the weaker ones i.e Greece, Spain, (Portugal/Ireland/Italy next on the hit list?) and when does this stop if ever?

Will the Germans stomach it or will they say nope we are not bailing you out you must leave the Euro...or worse still say that they are leaving the Euro and going back to the Mark.

If there is one good thing for us at least we are not in the Euro, but it really is no cause for celebration for us because our largest trading area as we all know is the Eurozone and we are also up sh1t creek too with barely a paddle concerning our debt.

 

[Tooting Gull]

Seems to have gone into freefall since Smug and Smugger came to power...

Which one is supposed to be Smugger? Tough call, but it must be Clegg. Cameron is still walking around looking like a kid who has been left the keys to the sweetshop.

 

[Lokki 7]

All depends on your time frame Harvs old chap. Should have bought copper and gold instead as some clever chap on NSC recommended some years ago I believe.

If you can wait 6mths plus then I'd say hold. If you need the dough within the next 6 weeks it's anyone's guess but mine is that it is going down.

 

[Beach Hut]

I think the Euro may self implode as it is now so fragile a real run on it will happen.

Bit like when Sterling so nearly collapsed

 

[Gully]

I think the Euro may self implode as it is now so fragile a real run on it will happen.

Bit like when Sterling so nearly collapsed

Not sure if it was genuine, but at the weekend I heard that some Germans have started printing Deutschmarks in preparation for the Euro going completely belly up...just so they have something to trade with. I guess they have more cause for worry than most, when their economy bombed in the 1930's and the money was worth next to nothing.

As for investments, hard call isn't it...if you can offload for more than you paid then maybe it is worth doing so if you don't think you can survive without the money until we hit a recovery period, which will happen...eventually! Alternatively, as someone suggested, a slack stock market can be a decent time to invest if you take a long term approach. At the moment banking stocks are a bargain, as long as you aren't looking for a short term gain or instant returns, look at them as a 5-year investment minimum.

 

[Seagulltonian]

What's the old saying, "Sell in May and go away", I think