Thursday, Nov 16, 2006

Where should yor money be, property or equities?

Cheshire: Is the property market still a better investment prospect than equities?

The stock market has had a good run in the last few weeks, while the prospects for the property market remain unclear in the light of last week's interest rate rise. So what should investors be doing now? Should they be considering switching their money from property investments, or does some degree of diversification between different types of asset still make sense?

Posted by jellycaster @ 05:37 PM (398 views)
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8 Comments

1. denzil said...

Heard you the first time.

Thursday, November 16, 2006 06:39PM Report Comment
 

2. nearly30 said...

Investment portfolios, diverstification, guaranteed income yeild - all bullsh*t!!!

There are some greedy g*ts in our local area buying up all the university halls of residence and charging a fortune.

I say slap a whacking great business tax on the buy-to-launders.

I'm all for a bit of private enterprise but the only people who can invest in the property market are those already with property.

Makes me think of the water companies in South America that spend a lot of capital putting in water infrastructure (which on the surface is a good thing) but then charge a small fortune for local people to get connected to the system - yet it is right on their doorstep.

And that's water!! Hope NL aren't reading this - it will give them ideas!!!

I feel it's a basic Human Right to have somewhere to live, in safety, have basic utilities, decent 'free' education and civil liberties - now you find me one of those that NL hasn't made worse for the peeps of GB.

Only the rich benefit in this country!!!

Thursday, November 16, 2006 11:09PM Report Comment
 

3. sold 2 rent 1 said...

Neither,

Gold and trees are the way to go.

Thursday, November 16, 2006 11:23PM Report Comment
 

4. Blindleadtheblind said...

So the Dow is at an all time high, great except for the fact that its dollar value has gone down by 33% measured against the $ index and is down by over 200% against gold. Not such a rosy picture really imo, same argument can be applied to housing. Its all about value, neither equities or housing can be considered good value at present.

Friday, November 17, 2006 08:52AM Report Comment
 

5. little professor said...

So good he posted it twice.

Friday, November 17, 2006 09:31AM Report Comment
 

6. uncle chris said...

I say neither as well - cash, maybe trees but not gold. City firms are taking massive bonuses out whilst they still can - and for some reason :-) they have brought the allocation of bonuses forward a few months this time round - what do they know that we don't. I remember similar events occuring before the last stockmarket crash (FTSE down from 7000 to 3500). I don't wish to be the harbinger of doom, but this country is in for a white-water ride and I would advise all to batten down the hatches.

Friday, November 17, 2006 11:15AM Report Comment
 

7. monty said...

Gold? Not sure about that one. Yes, it is a safe haven when the dollar comes in for a beating (as it has and is about to) but nowadays there's also the Euro. The long term average gold/oil ratio is about 15 and it is currently 10. Is gold underpriced or oil overpriced? Methinks the latter. It's running out, expensive to get at and those with it are limiting their supply in order to eke the most out of their limited reserves. Opec is rather opaque when it comes to letting the markets know how much they have left. (Here's a thought - why is Dubai so keen to switch to tourism and why is Saudi keen on Nuclear powered desalination? It's not concern over the environment that's driving it.) I see gold as being a speculative investment right now - the time to buy the stuff was 2001.

Equities? The Dow is supposedly overvalued right now and I've heard similar about the FTSE. Buying into a market just because it's gone up recently is "greater fool" logic that applies to housing, commodities and equities alike.

Cash? Maybe, as long as it's hedged to some extent against inflation. If BoE loses control over inflation (as some here maintain that they have) then those mountains of cash will start to look a little moth-eaten.

And as for "some greedy g*ts in our local area buying up all the university halls of residence and charging a fortune"... presumably this is because the uni has sold them off because they cannot afford to maintain them? In which case the "greedy g*ts" deserve to be rewarded for taking a risk, investing their money in the halls of residence and upgrading them. If they were to tear them down and build a golf course or casino, I could possibly understand your gripe but I doubt this the case. Long live the free market!

Friday, November 17, 2006 01:19PM Report Comment
 

8. sold 2 rent 1 said...

Monty/uncle chris,

Sure, gold is all about speculation and safe haven. There will be big fluctuations in this secular bull that still has another decade to run

The oil price will eventually start to rise again. The long term trend of the last few years of demand outstripping supply will continue.

The Euro is no alternative to the dollar. The Euro countries have the power to override the ECB and bring down the Euro interest rate if it gets to highly valued. I dont see safety and security with these possibilities.

Any half decent recession will put immense pressure on Italy, Spain, Portugal and Greece to drop out of the single currency.

We are somewhere in stage 2 of the secular bull
http://www.zealllc.com/c2004/Zeal090304A.gif

Friday, November 17, 2006 02:33PM Report Comment
 

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