FTSE 100 has taken a nose dive today!

GDB2222

!!!!!!? wrote: »

Longer term, the FTSE will go waaaaaaaay up from here. Plus the price to earnings ratio at these prices looks very attractive on many shares (OK, earnings will go down in a recession).

The FTSE is down almost exactly 20% this week, which is pretty scary. Alan M may be right in his assessment, of course, but otherwise the market is factoring in a real possibility of a very deep depression, not just the sort of recession we have seen in the last few decades but 1930's-style.

The trouble is that this becomes self-fulfilling at some stage, as regulatory pressures force insurance companies and pension funds to sell equities. That then puts more pressure on companies to top up their pension funds.

Also, these conditions put pressure on derivatives. You can be quite sure that someone somewhere has bet a trillion Pounds that the market can't fall 20% in a week.

We may be staring into the abyss here, or it may sort itself out. Rather, it will need sorting out. What the UK govt has done is admirable, and it is proportionately much bigger than what the US govt has done. Really, we are all in the hands of Dubya, which is what is really scary. Whilst the market thinks he could sort it out, there is a real doubt that he will.

dannyboycey

I'm seriously considering investing a few k for the long term now. We must be nearing the bottom. Sure, the next couple of years is unlikely to see another big boom, but over 5 years.... tempting.

GDB2222

dannyboycey wrote: »

I'm seriously considering investing a few k for the long term now. We must be nearing the bottom. Sure, the next couple of years is unlikely to see another big boom, but over 5 years.... tempting.

In 5 years time, it may look like a master stroke or an absolute disaster - hard to say which.

formulaonefan

FTSE now past -9% and it is now at -9.40% and It may touch 10% today!

Realy

More to the point 20% down in a week.
Where is all that money going to go?

Realy

formulaonefan wrote: »

FTSE now past -9% and it is now at -9.40% and It may touch 10% today!

Depends on US if they fall definatly, if they rise might put us back to around -5%:(

Dithering_Dad

!!!!!!? wrote: »

Gold has just taken a hit so that may be a sign that the DOW is about to rally.......

God, I hope not, my deal doesn't go through until the markets close. If the DOW opens and goes up, the FTSE will also go up before I buy. I want to buy at the bottom!

I'm actually hoping that people are moving their cash out of Gold, Gilts and other safe havens in preparation for a huge purchase on Monday. It'd be unusual for a rally ona Friday because a lot of dealers close their positions for the weekend (in case of bad news over the two days the exchange is closed).

While my stockmarket 'punt' is within my pension, so is realyl a 25 year investment, I would be a bit depressed if shares continued to fall once I've bought back into the market. However, the £10k I've saved by being out of the market temporarily is now locked into my pension

luvpump

GDB2222 wrote: »

In 5 years time, it may look like a master stroke or an absolute disaster - hard to say which.

Quite..this is no ordinary adjustment, dont forget we have had entire countries on the verge of Bankruptcy !!, & the U.S has not hit the bottom yet !!

kennyboy66_2

Dithering_Dad wrote: »

I'm actually hoping that people are moving their cash out of Gold, Gilts and other safe havens in preparation for a huge purchase on Monday. It'd be unusual for a rally ona Friday because a lot of dealers close their positions for the weekend (in case of bad news over the two days the exchange is closed).

What if "they" are closing short positions ?

If you are relying on there not being a rally because the day of the week starts with an 'F', you might as well invest based on reading tea-leaves.

Chris2685

ooo it appears to be rallying. It'll b back above 5000 by Monday!