Redrow Builders Results Are Downbeat About House Market

[Realistbear]

http://freeserve.advfn.com/news_Redrow-H1-...s_14483414.html

LONDON (AFX) - Housebuilder Redrow PLC reported a fall in pretax profit to

53.4 mln stg in the first half from 68.3 mln a year earlier, as expected by the

market following a

downbeat trading update in January when the group warned that

declining margins,

industry price discounting and a higher proportion of sales

of lower cost homes would reduce profits.

Why is it that the builders are "downbeat" at the same time the EAs are telling the sheeple that houses are flying off the shelves? Perhaps builders who tell porkies suffer consequences?

[karhu]

I think the notion of higher interest rates and higher bond prices is finally taking its toll on the stock market. We've had a very good run in equities; the game may be almost up for this cycle.

One thing to point out is that IMO the conditions that will result in HPC will also result in a lower FTSE 100.

[Realistbear]

I think the notion of higher interest rates and higher bond prices is finally taking its toll on the stock market. We've had a very good run in equities; the game may be almost up for this cycle.

One thing to point out is that IMO the conditions that will result in HPC will also result in a lower FTSE 100.

I am afraid you may be correct. House prices are the underpin for the UK economy and the reason sterling has held up. Some of the City bonus money and margin money has gone into the FTSE but it seems that there is not enough momentum in stockprices to weather the coming HPC. I am seriously thinking about lowering my exposure to stocks today as I put about 10% of my STM (sold to move) funds into the international markets including the FTSE. Its been a good run up and sentiment is getting very bearish on everything right now--symptoms of a depressed outlook.

[Janette]

I am afraid you may be correct. House prices are the underpin for the UK economy and the reason sterling has held up. Some of the City bonus money and margin money has gone into the FTSE but it seems that there is not enough momentum in stockprices to weather the coming HPC. I am seriously thinking about lowering my exposure to stocks today as I put about 10% of my STM (sold to move) funds into the international markets including the FTSE. Its been a good run up and sentiment is getting very bearish on everything right now--symptoms of a depressed outlook.

I sold to rent, found this forum whilst researching as to where to invest. I could not find anything i had any confidence in i don't even trust the banks right now! My mother told me cash has a use by date I was shocked, what i believed was a british thing (interest in housing).has happened around the globe. Bush, Blair they are political opponents and yet the same story. Are you HPC'ers just waiting for a crash so you can repeat history and be the new wave of HPI?

Is there ever a good time to lend people 6 times their income to buy homes?

I think all this boom and bust started when we went decimal first a depression in Liverpool that seemed to go on forever and then the same thing moved slowly south. Well, once the nits have been combed out of the south i hope we can all get back to some kind of normality!

Whats normality?

[OzzMosiz]

Are you HPC'ers just waiting for a crash so you can repeat history and be the new wave of HPI?

For me, I am waiting to be able to afford an average house on average wages using 3x my salary.

I'm in it for the house not to make money, but I ain't throwing my money on over-inflated housing

currently.

[karhu]

I am afraid you may be correct. House prices are the underpin for the UK economy and the reason sterling has held up. Some of the City bonus money and margin money has gone into the FTSE but it seems that there is not enough momentum in stockprices to weather the coming HPC. I am seriously thinking about lowering my exposure to stocks today as I put about 10% of my STM (sold to move) funds into the international markets including the FTSE. Its been a good run up and sentiment is getting very bearish on everything right now--symptoms of a depressed outlook.

Get out of stocks, get out of property, get out of Stirling, get out of Britain

[Van]

I am afraid you may be correct. House prices are the underpin for the UK economy and the reason sterling has held up. Some of the City bonus money and margin money has gone into the FTSE but it seems that there is not enough momentum in stockprices to weather the coming HPC. I am seriously thinking about lowering my exposure to stocks today as I put about 10% of my STM (sold to move) funds into the international markets including the FTSE. Its been a good run up and sentiment is getting very bearish on everything right now--symptoms of a depressed outlook.

I agree too, but I think the FTSE may yet see 6500 and perhaps even test it's 6900 high before the major top, as earnings are still very good (FTSE 100 p/e is only 13.. cheaper than back in 2003) and there is time for equities to get more expensive before the slowdown really sets in. I still think there is at least one last leg up for this market, and it may possibly be the biggest of the lot. There was a good article in yesterday's FT about the "stealth bull market" in equities. Amazingly, we are actually in the 2nd best bull market ever since 1950 (only beaten by the 1984-1987 period) for comparable timescales. The danger is, says the FT, we may enter a bear market by stealth also.