Thursday, Aug 09, 2007

Ready, steady, leg it!

FT.com: Flow out of UK property funds doubles

The flow of money out of UK property funds has doubled since the spring, figures to be published on Thursday show.

The data will be watched closely amid fears of waning confidence in the sector.

Investors have poured huge amounts of cash into property funds in the past few years to take advantage of yearly double-digit returns.

Posted by dohousescrashinthewoods @ 09:35 AM (168 views) Add Comment

10 Comments

1. Orwell said...

Ca P4C please explain his comments about growth at 3.5% meaning IR rises to date have only kept up or something?

Thursday, August 9, 2007 09:32AM Report Comment
 

2. tyrellcorporation said...

Nick Cooper of ING, chairman of the association, said inflows were still “impressive” and underpinned by investors’ long-term confidence in commercial property.

“The message I’m trying to get out is that it’s not doom and gloom as a lot of people, perhaps the uneducated, may have suggested,” he said.

Arrogant b*stard... we're 'uneducated' now are we !?! He's probably been offloading his portfolio for the last month or so!

Thursday, August 9, 2007 09:37AM Report Comment
 

3. Mark said...

I agree.... the market is going down even if we are all as thick as homer simpson...........DOH!!

Thursday, August 9, 2007 09:59AM Report Comment
 

4. Orwell said...

Depends on the meaning of a lack of education. The education of he and his (pseudo) capitalist mates in China? Tell that to the Dolphin that's just become extinct... Would they think he was educated?

Thursday, August 9, 2007 10:00AM Report Comment
 

5. Orwell said...

Anyway...

As Austin Tassletine would say...whad have you got...!

What does this actually mean? That those in the know are getting out early, that is all...

Thursday, August 9, 2007 10:01AM Report Comment
 

6. george monsoon said...

Nick Cooper comes across as very arrogant. The fact that investors are still sqandering good money after bad into property goes to show that maybe we are the educated ones, not the financiers in the city.

Thursday, August 9, 2007 11:01AM Report Comment
 

7. inbreda said...

Remember his name. If things really do go t1ts up you want to send a copy of the quote to every newspaper and possible employer you can.

At the very least get his telephone number so we can all call him up and have a gloat.

Thursday, August 9, 2007 11:20AM Report Comment
 

8. planning4acrash said...

Orwell, a previous article related to the recent inflation report suggested that growth could be revised upwards, closer to 3.5%. If growth was closer to 2.5% before IR's started rising, then a 1% rise in interest rates during that period would probably have a neutral effect, remain the same number of basis points above GDP growth as it was before, particularly if spare capacity doesn't rise and the potential for inflation rises by a whole 1% in response to a 1% hike in GDP. I think that 3.5% GDP rate was idle speculation and none of those figures I've quoted are meant to be accurate, but they do illustrate the point, that if growth goes up, then IR's must rise accordingly to maintain the same effect. Any further tightening of interest rates, when growth is accellerating, must be equal to the amount required to for rates to have the same effect as before, plus the amount that you wish to tighten fiscal policy.

Thursday, August 9, 2007 11:26AM Report Comment
 

9. Orwell said...

I think I understand (and I am supposed to be educated). So you are saying that the current predicitions by the City that IR's will be 6.5% two years hence are based on a model with growth at 2.5%?

The City look right at 6.25%, posibly as high as 6.5% by Xmas then. Are there variables though like other factors keeping them down in spite of growth figures 60% (or so) higher than predicted?

The two Economists in the Telegraph today suggest 6% for some time and a cut next year.

Thursday, August 9, 2007 11:37AM Report Comment
 

10. paul said...

Haha. This is like the MD of a company whose share price is plummeting saying "Well all those investors who are selling off our shares are stupid, have no education and smell. Yeah they smell too."

Pitiful.

Thursday, August 9, 2007 11:51AM Report Comment
 

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