I was wondering. With the property prices poised to take a battering and the mortgage approvals falling to very low levels, should we be avoiding investing in stocks of the mortgage institutions and property developers? Like the HBOS and Abbey? I am sure people will have started shunning the property developers and EA`s- or do you think still there is a life in them? Barclays had wisely got out of the mortgage market early on. Would they be good buys? Answers from experts welcomed.

I would avoid stocks in general. The U.K. is almost assuredly headed for a recession which means lower earnings. In particular, avoid consumer/retail names.

U.K. bonds look good here as interest rates fall.

I agree with HFA that general retail stocks are probably in for a rocky patch (but they said that last year also), but I think commodity stocks are in for another very good year. Did you know that hte FTSE 250 rose 20% last year (excluding divi)? And everyone is supposedly all doom and gloom on the stock market!

That's why some people have been living off a long term long 250/ short 100 hedge for the last 5 years. Crash proof as well.

Lush.

That's why some people have been living off a long term long 250/ short 100 hedge for the last 5 years. Crash proof as well.

Lush.