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The Masked Tulip

Investors Told Forget Savings Accounts, Think Of Shares

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Britain's 38 million savers were urged to invest their money in the stock market after being warned that for many of them it was now a "waste of time" putting their cash into a savings account.

http://www.telegraph.co.uk/finance/personalfinance/investing/8202251/Investors-told-forget-savings-accounts-think-of-shares.html

Edited by The Masked Tulip

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charles_ponzi_1920.jpg

There is sure a fvck of a lot of money in fees to be paid when you issue a trade order, for a fvck of a lot of people!

And yes, a lot of people are going to be that stupid to gamble their savings.

What kind of code of ethics does the city run on? None.

Don't forget the important fact that your savings are protected by the government for £50k per account (for now at least).

Stocks have no such protection.

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can they also explain to us how the banks will be able to lend without savers' deposits???

Where does the money go, after you have bought the shares?

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I'm dabbling (£1k) in zopa at the moment. Did the Torygraph mention peer to peer lending? Well no, but they did run something on zopa and zopa-likes at http://www.telegraph.co.uk/finance/personalfinance/savings/8150869/Would-you-lend-your-money-to-a-complete-stranger.html

I find it quite refreshing to have no government guarantees and be forced to understand risk.

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It is like 1929 again:

Korea is close to entering the era of Kospi 2000. The bullish market is encouraging retail investors to borrow money so that they can invest more in the stock market.

http://joongangdaily.joins.com/article/view.asp?aid=2929544

People borrowing to buy into shares is what happened in the run-up to the 1929 Crash. Question is, is it 1929 now or is it 1928, 1927, 1926?

On one hand you argue that this is madness. On the other hand you can argue that if people are piling in then this rally has some way to go. Oh dear.

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The fact is, there is not enough wealth to meet current claims on wealth.

IMHO, the more the haircut is spread around, the better.

It strikes me that easily led people with spare money are about to get a No. 1 cut.

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That Telegraph article really is a disgrace.

There really isn't any independent news organisation left. Interviewing people with a commercial interest, the presenting their self-interested views as facts is something I would expect from the Express, but the Torygraph used to be a respectable newspaper.

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The comments below the article are interesting.

They are indeed. They read like a HPC poster's posse but they can't all be from us (although one definitely is :) ).

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In many respects they are correct, money in a bank account earns zero, unless you want to take out one of their bonds in which case you are being paid for the credit risk you are taking on. over time your real rate of return is about -3% as inflation is eating away at your capital. A decent portfolio of shares should give you an earning yield of around 8% or a div yield of say 4% and over time should be inflation proofed to some degree . The key is to open an account with a low cost internet broker, buy for the long term and avoid any funds with high fees like the plague ..

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Perhaps "scratchcards" will be hailed as the next investment vehicle! :huh:

The comments made more sense than the actual article! :huh:

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Not a word about diversification, the single most basic element for protecting your wealth. Other than fraud.

With the sharp sell-off index linked gilts will offer a broadly positive yield now for most maturities, and dare I mention a certain metal.

The masses maybe being led to another massacre.

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Perhaps "scratchcards" will be hailed as the next investment vehicle! :huh:

The comments made more sense than the actual article! :huh:

As it happens I have a small wodge I need to invest. You guys are saying that a stocks and shares ISA portfolio with a bank is a road to loss? So what do I do? I need my money to work for me! :blink:

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This could be viewed as the final phase of the current stock bubble when articles like this appear in the mainstream meeja.

I'm surprised at the opprobrium being heaped on this article here.

Sure, shares are a risk of capital loss. But, just now, cash is a guaranteed loss.

And I don't think you can describe the market as a bubble at all; particularly the big, boring divi paying blue chips that have not really joined the rally. Even the wider market is down on 2007 and, indeed, a decade ago. How's this a bubble?

My portfolio returns around 4.5% through divis and, while at risk, the capital holding also offers a degree of inflation protection. Seems better than cash to me. Although I should point out I do have cash/fixed rate bonds to the tune of around 40% of my wider investments.

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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