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Footsie Shrugs Off Economic Gloom

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Imagine if stocks stay attractive investments, while house prices slid....

Then maybe there could be a feedback, such that more and more investments switched from property into shares, causing shares to rise and houses to crash. Imagine that....

Could it happen?

Edited by Levy process

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[Dunno, but my shares are up a very good percentage over the last few weeks. I'm sure there'll be some profit taking along the way though. Prior to the, er-hem....crash...that is

Edited by FreeFall

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Don't forget that money will be diverting from housing into stocks. So until the economy really starts to tank there is likely to be increased liquidity in it.

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Imagine if stocks stay attractive investments, while house prices slid....

Then maybe there could be a feedback, such that more and more investments switched from property into shares, causing shares to rise and houses to crash. Imagine that....

Could it happen?

WIth oil and banks making up a large percentage of the main index, I imagine that will hold fairly steady. It is not at an all time high and has a fairly resonable yeild, considering interest and bond rates.

The mid 250 index is at a high and contains more retail stocks. This is the one that could be first to see some selling.

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Not all stocks and shares are in house builders or high street retailers. Sure the economy is looking to take a beating but many stock market sectors, particularly electronics, telcos and dot coms are still on the rebound from lows of 4 years ago. Which is incidentally when people were ploughing their money into the housing market as a safe haven.

The stock market is now gaining directly from the transfer of assets from property, who the hell in their right minds would invest in property right now? I can't count the number of times I heard people talking about gold recently. Until a couple of years ago property was gold.

The Midas years have now finished though and now Gordon Brown has now caught the detritus touch. Watch him run around like a trapped rat, desperately trying to prop up the housing market in any way he can until he gets the chance to escape his job of chancellor. Meanwhile Tony hangs on in there like a dog in a manger, waiting for things to turn sour before handing over the poisoned chalice.

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Are all you wheeler dealer types watching your portfolio's more closely than usual at the moment? How will you know when to offload them to avoid losing your money?

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WIth oil and banks making up a large percentage of the main index, I imagine that will hold fairly steady. It is not at an all time high and has a fairly resonable yeild, considering interest and bond rates.

The mid 250 index is at a high and contains more retail stocks. This is the one that could be first to see some selling.

The FTSE250 has been way outperforming the FTSE100 for years - it used to be about the same value of the FTSE100. Of course there is no guarantee that this trend will continue but it is showing no signs of weakness so far.

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  • 302 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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