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Equity Boom...

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Everything else has boomed. House prices, gold, oil, gas, food, cheap chinese imports, why not equities?

Because all equities are is pieces of paper that entitle you to a share of the profit of the company. If the company makes no profit, then the share certificate is worth only what you can sell the companies assets for. If the company makes 10% of its total shares price in profits and the price doubles, it becomes 5%. Still more than you can make in the bank, but you are taking the risk that the company will go belly-up.

The other things you mention have intrinsic value. You can live in a house, you eat food, you burn gas. Gold is the exception, but then that is real money.

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Everything else has boomed. House prices, gold, oil, gas, food, cheap chinese imports, why not equities?

It only just ended a boom ten years ago. It was a big boom. Needs a while to cool down before booming again. Could be 5-15 years yet if I had to guess.

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It only just ended a boom ten years ago. It was a big boom. Needs a while to cool down before booming again. Could be 5-15 years yet if I had to guess.

It took 25 years last time we had a mega equity boom to regain its former value 1929-1954.

So 6930 on 31st December 1999 would be revisited towards the end of 2024 if that was repeated.

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Everything else has boomed. House prices, gold, oil, gas, food, cheap chinese imports, why not equities?

A twenty year equity boom ended in Dec 1999

I remember the FSE being 7,000

Tech companies had pe ratios above 100

When I think back it looks like house prices and bond prices look like now

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  • 284 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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