MSE News: Guest Comment: Don't sweat over stock market falls

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"With markets in freefall, Adrian Lowcock, from Bestinvest, says investors and pension savers shouldn't panic ..."

Read the full story:
Guest Comment: Don't sweat over stock market falls

fairleads

Volatility brings opportunity. A cliche, but true never the less.:beer:

lvader

teddyco wrote: »

The good news......as stocks fall and the economy weakens, oil prices will fall. Bad news for those of you who
have capped your energy bills as prices should come down again in the Spring 2012.

Oil has already fallen 30%, I wouldn't expect more fallls moving into the winter months. Utlilties buy Gas etc well in advance so the current increases will stay in place over the winter months and then magically come down next spring when demand is down.

DiggerUK

"With markets in freefall, Adrian Lowcock, from Bestinvest, says investors and pension savers shouldn't panic..."

Mmmmm, so we have a commentary from somebody without any interest in the subject.
All the article does is try and reassure everybody that the world is rosey. I think most regulars, newbies, and lurkers, will read the article with disbelief.

And that disbelief will have come about because, like me, they have seen unemployment going higher, manufacturing and GDP collapsing, witnessed inflation rising, and have paid attention to what Ben Bernanke, Mervyn King, and Jean-Claude Trichet had to say in the last few days.

This article is 'The soft soap for idiots guide'
..._

Reaper

He says:

the European leaders have indicated they will do everything possible to prevent a collapse in Europe

Can't say I've seen much to convince me of that. Currently the only plan seems to be to thow more money at it. It didn't work before and it won't work now. What they need to do is tackle the fundamental causes.

My fear is that the leaders lack the political will to do what is necessary. In the end it will require either much tighter economic integration or for Germany and France to leave the Euro so it can sink to a realistic level and take the pressure off.

I think it more likely they will watch it meltdown than make the tough calls.

Ark_Welder

Finland and Holland would be more likely candidates than France. Germany is benefitting from being in the Euro with the problem countries because it is doing wonders for its exports. Returning to the Deutchmark - or the stronger countries moving to a 'Euromark' - would probably result in less growth for Germany (and any other follower) because that currency would strengthen against others. This strengthening against the old currency would cause problems for those banks that owned Euro debt because the likely devaluation of the Euro would result in their receiving a good deal less when converted into the new currency - a self-inflicted haircut, and something that China appears to be in the process of doing with its apparent reluctance to buy more US Treasuries this week.

Reading in yesterday's FT that Switzerland may be considering pegging its currency to the Euro to stop it from rising. Perhaps the stronger eurozone countries will join the Swiss currency instead. I'm sure that France would love a new currency to be called the Franc...:D

Money_Saving_Dude

"At the moment, there remains a lot of nervousness and we continue to see wide swings. However, the signs are things are stabilising around a new lower level."

So is it settling or volatile? And this new level -- after a week! How does he know? Who's to say something doesn't spook the market ("a lot of nervousness") and we get another round of sell-offs, taking us back below FTSE100 5000?

Debt is still the big problem and people are unwilling to spend. The lunatics in the US asylum are willing to let their debt grow, because they don't like the idea of taxing the rich (the fairest way out of the problem) or cutting the benefits to the poor (the normal solution). So their debt is going to continue to be a problem for a long time.

The Europeans can't bring themselves to do the correct thing and bring political union closer together. Going back to individual currencies would be seen as retrograde (and a failure) but moving forward to a eurobond is a very big pill to swallow. Having said that those that put the eurozone together knew this, so really the plan is working.

And we sit on the sidelines worried that when the US and Europe get their acts together our banking sector will go down the pan, and with it our economy (so ha, the South East can suffer what the rest of us have been suffering for years).

But apart from that, everything is smelling of [STRIKE]sh...[/STRIKE] roses.

cinderfella

Make the most of any bad market days. I think the volatility may well ease off. As someone said 'settling at a lower level'.

bendix

DiggerUK wrote: »

"
Mmmmm, so we have a commentary from somebody without any interest in the subject.
..._

Says one of the two posters who never miss an opportunity to post links to spurious commentators saying what a great investment gold is . . .

Not that you have any exposure to gold yourself, right Digger?

gadgetmind

> If you have an adviser ask them what the fund managers are saying and doing.

Fund managers are saying, "Invest your money with me, I promise (1) to beat the market and keep your money safe (1), but will take 2% of it every year for the privilege. Meanwhile, Advisers take 5% up front and then 0.5%+ pa for recommending (1) that "XYZ Emerging Market Amplifier" is where you ought to be investing.

(1) - The value of these promises and advice may go up and down.

dunstonh

Meanwhile, Advisers take 5% up front and then 0.5%+ pa for recommending (1) that "XYZ Emerging Market Amplifier" is where you ought to be investing.

Now there is a blast from the past.... 5% up front that is. Those days are long gone.

The FSA did a review of up front commissions some years ago (and monitored them over multiple 6 month reporting periods) and found the average was 1.8% up front.

That said, RDR will see figures close to 5% come back in for small investors as the current model of cross subsidy is banned. Medium and larger investors should see charges come down more.