More market mayhem - FTSE back down to 3,777

earlgrey_3

baby_boomer wrote: »

He starts to question the wisdom of Anthony's Bolton's "buy" assessment of shares, but questioning whether company earnings will stand up in the downturn.

The first rule has to be not to take too much notice of recommendations from those with vested interests. Neither Anthony Bolton nor Warren Buffet will have been giving their 'buy' advice from the goodness of their hearts. Don't assume that anyone giving such advice isn't doing entirely the opposite themselves.

You might as well believe someone like Mark Dampier of Hargeaves Lansdown who has jumped from one failing investment to the next to persuade us to give them the money that earns them commission. As recommended investments have plunged week after week never of course has he ever advised clients to move into cash.

Anyone with an IFA is likely to have had the same "advice". Anyone who does have an adviser who gave them honest advice rather than just protect their own commission should hang tightly onto them. They're a very, very rare breed - some say long extinct. :rolleyes:

Oblivion

aqueoushumour01 wrote: »

well i did jump in this week - i need to keep reminding myself that it's 'a long term investment' :cool:

Hmmm, you'd better pray that someone discovers the elixir of life pretty soon

Dave.

derbyjon

If anyone employed to provide share picking advice actually knew what they were doing, they wouldn't be giving the advice in the first place. They'd be so minted they wouldn't need a job.

dunstonh

derbyjon wrote: »

If anyone employed to provide share picking advice actually knew what they were doing, they wouldn't be giving the advice in the first place. They'd be so minted they wouldn't need a job.

That assumes they have capital in the first place and assumes they want to give up earning £200k a year or whatever.

derbyjon

dunstonh wrote: »

That assumes they have capital in the first place and assumes they want to give up earning £200k a year or whatever.

If I had no money but had a crystal ball and knew which stocks were going to rise and fall and when, I'd borrow £1,000 and then grow it at the 1,000%+ annual rate I could easily achieve by buying and selling just at the right time. Two years later I'd give the bank manager his £1,000 back and try to work out what to do with my £1bn.

dunstonh

derbyjon wrote: »

If I had no money but had a crystal ball and knew which stocks were going to rise and fall and when, I'd borrow £1,000 and then grow it at the 1,000%+ annual rate I could easily achieve by buying and selling just at the right time. Two years later I'd give the bank manager his £1,000 back and try to work out what to do with my £1bn.

A share that is going to grow at 1000% in a year or two.... Yeah, thats an every day occurrence we can all easily get right :rolleyes:

a7man

Well I jumped in today at 12.00 while the market decided to go nuts, lets just hope theres some good news next week to bump it back to 4200 ish. My plan is the short term but I've put away what I can afford not to touch for the long term, so v unlikely I'll lose out.

Saw this as an opportunity not to be missed!

Plenty of economists are saying its a good time to buy, but then plenty of others predicting even worse! Warren Buffet says buy, buy, buy. Gotta get in there before everyone else!

EdInvestor

The current thrashing about seems to be related to the demise of the hedge funds.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3253992/Financial-crisis-Hedge-Fund-turmoil-is-hitting-millions-of-savers-experts-say.html

Probably need to get them out of the way before normality can be restored.

1echidna

Too many people believing the market acolytes or otherwise deluding themselves that we are not in for a prolonged and deep recession. Some in the market are beginning to assess that UK plc doesn't have good prospects. This still has some way to go.

Blah99

If you're looking at the long term now is as good a time as any to buy as a lot of companies are seriously undervalued. But you'll have to buy then just go and forget about looking at the price for a long time otherwise you'll have a heart attack.

Personally I think we've got some way to go yet. The FTSE100 is probably going to break below 4800, and then it's all downside to 4500 or even 4200. After that I think I'd call bottom and start looking for the rise. As soon as I see the upwards momentum I'll get back in on the trend, but not before then. I'm basically 80% in cash at the moment, and some of what's not in cash has taken a serious battering (although I'm confident for a long term return).