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