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Why You Should Be Terrified

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Why You Should Be Terrified

By Ed Bowsher (TMFArkle)

February 23, 2006

There are so many reasons to be scared of the market right now.

For starters, we may be in the middle of a housing bubble. Who knows what will happen if housing prices fall? Homeowners would have less equity in their homes and that might restrict their ability to buy goods and services. Economic growth would fall as a result. The Government has also been on a borrowing binge, so Gordon Brown may have to increase taxes further or cut government expenditure. Either way, that will reduce demand in the economy.

http://www.fool.co.uk/news/comment/2006/c0...ooyhoit14050001

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If the market tanks, which it might well do after 6000, then that will only serve to re-enforce peoples perceptions that at any cost, bricks and mortar is where its at.

People still dont really trust the market. Just one big hit will sent them scurrying for cover .

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The market

I work in the electronics buisness.

We exist on the back of orders to build speacialist machines for the food industry.

I can tell you that trade has picked up although at a price...our profit margins have been reduced consecutivley month on month and now its at an all time low.

Be very aware about any talk of manufacturers order books getting better..they are, but not for long. Its a matter of time before we see no sense in going to work to loose money, redundancies are a reality and they are going to happen up and down the country and not just in my industry

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Regarding redundancies, there are now two Australian state governments talking about cutting jobs whilst in another state the surplus has turned to a small deficit. All sounds VERY similar to about 1989.

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The market

I work in the electronics buisness.

We exist on the back of orders to build speacialist machines for the food industry.

I can tell you that trade has picked up although at a price...our profit margins have been reduced consecutivley month on month and now its at an all time low.

Be very aware about any talk of manufacturers order books getting better..they are, but not for long. Its a matter of time before we see no sense in going to work to loose money, redundancies are a reality and they are going to happen up and down the country and not just in my industry

The food industry is going to be hit harder than ever this coming year with the hammering its getting from the press over unhealthy eating. Unilever (Birds Eye), Heinz and Greencore foods have already realised and getting out of the market, more and more will follow and hence redundancies.

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Did you see the trev McD thing about bad fats?

I didn't see the programme but as ever the UK is behind everyone else!!

While in Canada in 2004-2005 I noticed a lot of packaging saying 'No Trans Fat'.

Even 'Mcdonalds' were weening their customers off of it :)

Old story I'm afraid - same as 'No Smoking' in pubs and restaurants!!

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The food industry is going to be hit harder than ever this coming year with the hammering its getting from the press over unhealthy eating. Unilever (Birds Eye), Heinz and Greencore foods have already realised and getting out of the market, more and more will follow and hence redundancies.

A sudden collapse in demand for Turkey Twizzlers drove Canterbury Foods to the wall.

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Its a matter of time before we see no sense in going to work to loose money, redundancies are a reality and they are going to happen up and down the country and not just in my industry

Not entirely unexpectedly, the company I work for is laying off about 100 people around the world (50-60% of the total employees), just got told tonight that I won't be one of them. However, it does look like quite a few will be picked up by our competitors and collaborators in the industry: within three hours of the press release going out we were getting emails from head-hunters trying to set us up for interviews with the competition.

As a shareholder, it seems like the right choice, but as an employee it's not so nice.

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If the market tanks, which it might well do after 6000, then that will only serve to re-enforce peoples perceptions that at any cost, bricks and mortar is where its at.

People still dont really trust the market. Just one big hit will sent them scurrying for cover .

"People still dont really trust the market." - Which is why it will keep on rising. ;)

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Its rising because smart people are making money from it. As many on here are very quick to point out, the UK populus is NOT smart (sheeple is the favoured term I think) and the vast majority of them are not buying/selling shares. These are not people who look at the closing prices every day on Yahoo.

They will take notice when the day comes that they switch on the 6 o'clock news and hear the headline "Footsie crash", and this will re-enforce the view that for all its a roller coaster, stick with property.

Heads will then go back in the sand, and most concious thought will return to other things.

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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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