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29929BlackTuesday

Ftse Crashes Upwards!

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We WANT the stock market to go up!

Look - it is investment in business and it encourages PROPER investment ie in people and companies.

Trading shares on the stock exchange is much more about speculation than investment

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Trading shares on the stock exchange is much more about speculation than investment

yep, its about the next quarterly report, or even shorter, not long term investment. If it was long term investment then good well run companies would not go down in price during recessions as they would have long term potential.

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So - good news.

The good news is the extreme volatility... it drives investment away - and encourages only speculation. It drives up margins where trades are made with leverage - and that further limits investment.

Volatile asset prices now => risk in future.

More risk => more expensive credit => lower house prices.

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?

It was in 2007. Buy and hold didn't really work during 2007... it returned less than a savings account (on average) and we're down over 10% so far in 2008.

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yep, its about the next quarterly report, or even shorter, not long term investment. If it was long term investment then good well run companies would not go down in price during recessions as they would have long term potential.

Yes that's how traders / fund managers do things. ARGH EVERYONE'S SELLING - SELL SELL SELL AHHHHHHH. OMFG EVERYONE'S BUYING - BUY BUY BUY!!!!!!!!!! That's just the way it is.

We mere mortals on the other hand can do things however we want as we're not driven by performance targets and it's not our job on the line if our investments die on their arses. We have all the time in the world.

It all depends on a) your ability to not run around like a headless chicken at the first sign of trouble and B) the size of your nutsac.

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We WANT the stock market to go up!

Look - it is investment in business and it encourages PROPER investment ie in people and companies. Plus it is a draw for those BTLs who are not doing too well.

So - good news.

Its not so much up as recovering prior losses.

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Guest grumpy-old-man

did you know that HBOS has lost over 50% of it's share value since May 2007.

Just to put this into context, for those saying that all is well on the financial front. ;)

I would hazard a guess (without even checking) that they have lost more in under a year than in the last 25 years (in % terms).

they are worth less now than they were in 2001

Edited by grumpy-old-man

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Guest tenant super
Trading shares on the stock exchange is much more about speculation than investment

********, it's about investing in companies that are well run and are going in the right direction so as to give you a decent income via the dividend, it's not just about capital growth and I doubt most investors expect anything beyond solid growth.

I wouldnt call that speculation, it's about exercising sound judgment and being canny.

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  • 292 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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