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Surrey cash buyer

Stock Markets Flying High

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At the end of last week world stock markets were looking very precarious. Last week the Nikkei lost 3% in one day, the Dow plummeted and the FTSE was going the same way. By Friday last week some here were recalling previous stock market crashes and suggesting we were in for another.

But at the end of this week the damage is undone, The Nikkei is back to a new 52 week high and the FTSE looks set to close the week also on a new high.

I can't make sense of this but what is best for HPC?

It seems to me that the last thing we want is a stock market crash. We need stocks and shares to look like a good investment, a much better place to put spare cash than property. And if the stock market is doing well then all must be well in business and there is no case to lower interest rates.

Much of the reason for the rapid rise in house prices over the last 5 years is down to investors seeing property as a good place to build up a pension fund. How about if that switches around now to a stock market based pension fund being the best place to save for a pension?

Then the counter argument must be that those people who already have a substantial investment in stocks and shares will feel richer as the markets rise and will feel more inclined to take out a bigger mortgage to buy a more expensive home.

I can't get my head around this. Can you all help me out please?

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Heard of equitable life? :) Joe Public is fed up with traditional pensions and the annuity trap at the other end.

Edited by mercsl

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I think the best scenario would be a healthy stock market on top of slightly higher interest rates. I think the equity markets will be able to handle modestly higher rates, say, 5%, whereas the property market will find that level crushing. What we want and what we get are rarely the same, however :)

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FTSE Goes up for too long then money moves from property to the FTSE.

FTSE goes down a little then jobs go so no one would by property with big loans except people who are moving out of the FTSE

FTSE crashes because it's a house of cards then Property, Economy, Banking system hit's the floor and it's time to buy a large quantity of food and lock your doors.

Just think our very existence depends on a gamble where the players are evermore desperate to make one last buck using financial tools that gamble with shares that they don’t even own (Derivatives), it will all end in tears I thinks

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  • 301 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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