FTSE In Freefall Again

[aftershavedave]

There is a saying that the time to buy is when everything capitulates. I think that is happening now.

However, we are in unchartered waters here. There is nothing to suggest that we are going to stabilise here.

It may be worth a punt now, but only invest what you are able to lose totally. Otherwise, invest in defensive stocks, e.g. utilities, pharmaceuticals, food retailers. (You are advised to seek professional help first though ).

i'd agree with that

 

[larus]

I think that is about right, there are some absolute bargains out there at the moment, it will be a case of pick the right stock and ride out the storm...your warning about only investing what you can afford to lose is spot on, I have been guilty of backing a couple of companies that had they been horses would have ended up in the glue factory.

BTW, you have not been charged for this 'advice'.

 

[Icy Gull]

In other words it's back to a realistic level.

No longer cheap as chips, which is a shame. I loved paying for hotels, car hire and buying Levis etc in the US when the dollar was 2 to the £1.00.

I don't much like realistic in these circumstances.

 

[spacey]

Can anyone tell me where the money goes when the FTSE etc goes down?

FTSE 100 4002.52down -311.28 -7.22%
Dax 4431.27down -455.73 -9.33%
Cac 40 3174.02down -268.68 -7.80%
Dow Jones 8579.19down -678.91 -7.33%
Nasdaq 1645.12down -95.21 -5.47%

If it goes anywhere that is

 

[larus]

It only goes somewhere once a transaction takes place.

For example. I buy some shares in Vodafone at £1.

Vodafone then does really well for 2 years and the city then values the company at twice the original value, due to expectations of bigger profits in the future. There is no financial gain/loss here, not until I sell the shares. In theory, my money has doubled.

If Vodafone then does badlay and the shares go down to £0.50, I have potetntially halved my money, or gone down to 25% depending on where you value it from.

The loss/gain is only realised once the shares are sold.

 

[Uncle C]

Can anyone remember what the lowest figure the FTSE fell to during the 'dot com' crash?

 

[Gully]

I started to take an interest in the Stock Exchange about 20 years ago and seem to remember the FTSE 100 being way lower than it is now, maybe below 2000 points, but I might be wrong!

 

[larus]

Can anyone remember what the lowest figure the FTSE fell to during the 'dot com' crash?

Low 12/03/2003 3277.5 (Since 1999).
High 30/12/1999 6950.6

 

[seagullsovergrimsby]

I started to take an interest in the Stock Exchange about 20 years ago and seem to remember the FTSE 100 being way lower than it is now, maybe below 2000 points, but I might be wrong!

The FTSE 100 index commenced in 1984 and started at 1000 points , so you are correct. It basically replaced the FT 30 index as being more representative.

 

[Uncle C]

Low 12/03/2003 3277.5

Ok, well if its any crumbs of comfort, I had investments (ISAs) etc that totally bombed during that collapse. Many were only about 30 - 40% of the initial investment.

Five years later they were all back in profit.

Although they will have bombed again now there is no reason to get suicidal about it.

My advice from that last crash would be to buy ISA's etc when the market is looking bleakest. Might be a little while yet as this event is much more severe than the dot com collapse which was more a correction!

If the markets hit 3000 then

 

[beardy gull]

Video- CNBC.com

Don't panic! Morgan Stanley and Goldman Sachs in trouble.

 

[Tom Hark Preston Park]

Tis but a small silver lining, but nice to see the bankers and the traders RIGHT DOWN THERE with the estate agents and the recruitment consultants as the dregs of society. Eunuchs staring powerlessly at a computer screen flashing nothing but red

Masters Of The Universe my arse

 

[aftershavedave]

Tis but a small silver lining, but nice to see the bankers and the traders RIGHT DOWN THERE with the estate agents and the recruitment consultants as the dregs of society. Eunuchs staring powerlessly at a computer screen flashing nothing but red

Masters Of The Universe my arse

what a stupid comment!

 

[Tom Hark Preston Park]

what a stupid comment!

Agreed.

But not yet worthy of universal condemnation - on account of not using the word windo*-li*ker