200,000 buy-to-let investors lose up to 90% of their cash

geoffky

just found this...........

We are told that investing in the stock market over the long term always proves to be a better investment than to invest your money in a savings account. This is not entirely true and is usually quoted by those who have a motive to encourage you to invest.
It does depend what you mean by long term. Some people would consider a couple of years a long term but the advice is generally that long term is over 5 to 10 years or more.
If we look at the London stock market over the last 10 years we discover that it hasn’t always been such a good investment. It is important to keep in mind that shares will often pay dividends so it isn’t all about capital growth but if we focus purely on capital growth we find that investing in the stock exchange can be very disappointing if you get your timing wrong.

If you had invested in the stock market, either in a fund that follows the Footsie or the All Share market in the period around 1998 to 2001 those shares would now have about the same value. Some shares will have risen well but others will

Generali

geoffky wrote: »

just found this...........

We are told that investing in the stock market over the long term always proves to be a better investment than to invest your money in a savings account. This is not entirely true and is usually quoted by those who have a motive to encourage you to invest.
It does depend what you mean by long term. Some people would consider a couple of years a long term but the advice is generally that long term is over 5 to 10 years or more.
If we look at the London stock market over the last 10 years we discover that it hasn’t always been such a good investment. It is important to keep in mind that shares will often pay dividends so it isn’t all about capital growth but if we focus purely on capital growth we find that investing in the stock exchange can be very disappointing if you get your timing wrong.

If you had invested in the stock market, either in a fund that follows the Footsie or the All Share market in the period around 1998 to 2001 those shares would now have about the same value. Some shares will have risen well but others will

It is factually correct. However, dividends typically make up 50% of the returns from an equity portfolio (depending on the sort of companies you invest in of course) so it is silly to ignore them.

I think that 1998-2008 is the only 10 year period since 1901 that shows any other asset class performing better as an investment than equities. BTL has done better as have bonds I believe (due to declining interest rates).

tomstickland

Gorgeous_George wrote: »

When a gag needs explaining it loses its shine, don't you think? Maybe it was too subtle for more recent members.

Besides Tom, the correct post #30 would have been...


'a little bit of toast'



GG

Well, there is a certain secondary pleasure when a joke causes confusion, but I didn't want anyone thinking I didn't understand the difference between the two words!

tomstickland

dial8d wrote: »

at the risk of being laughed off the forum, can someone explain to me what "mewing" is ?

:huh:

Getting down on hands and knees and making noises like a cat. Max Moseley is quite into it.

Either that, or Mortgage Equity "Release". Er, maybe.

tomstickland

Dithering_Dad wrote: »

Actually, the Northwest (where I'm from) has two areas of outstanding natural beauty; The Peak District (England's first national park) and The Lake District (England's largest national park).

Find me any crap hole and I'll find you some attractive countryside within 50 miles of it.

WTF?_2

tomstickland wrote: »

Getting down on hands and knees and making noises like a cat. Max Moseley is quite into it.

Either that, or Mortgage Equity "Release". Er, maybe.

That 'Gorgeous George' Galloway you are thinking of

BACKFRMTHEEDGE

Dithering_Dad wrote: »

Actually, the Northwest (where I'm from) has two areas of outstanding natural beauty; The Peak District (England's first national park) and The Lake District (England's largest national park).

Amen to that - the Wirral's not bad either (that's where I'm from:D). If you've never been to either of the above or some parts of the NW, you don't know what you're missin;)

BACKFRMTHEEDGE

geoffky wrote: »

I have been told that if you have invested your money in the footsie250 in the last ten years then your investment will be down . is this true as i read that somewhere...

I read this too:eek:

Gorgeous_George

If houses down South lose 50% of their value, say £100K, similar houses in the North will have lost 30% or £30K IMHO.

But that is not the point. The North is every bit as beautiful as the South. Many fishing villages on the NE coast for example would be worth millions if they were in Cornwall. Sometimes, stereotyping and slanderous comments on Internet forums can have a negative effect that make places sound worse than they really are.

GG

dopester

Gorgeous_George wrote: »

Sometimes, stereotyping and slanderous comments on Internet forums can have a negative effect that make places sound worse than they really are.

(Peter has just accused Jameson of slander) It is not! I resent that! Slander is spoken. In print it's libel.

Source: Spider-Man (2002)