The next stock market correction

Glen_Clark

moneyfoolish wrote: »

I've never understood why the market has been going up for the last few years when the economy was in such a terrible state

basically because the Bank of England has been printing money like lunatics, guaranteeing sub prime mortgages with taxpayers borrowed money, so people have little trust in their paper money and want to exchange it for anything else.
You can get a better of the real state of the economy from the tripling of queues at foodbanks, the Red Cross distributing emergency food parcels in England for the first time since WW2, and the mass migration of grocery shoppers to places like Lidl, than you can from Official Statistics bandied about by politicians with an agenda.

talexuser

Anything to do with links to money printing, especially asset prices, somewhat less housebuilding and associated economic activity seems to be picking up nicely. Those in the middle seem static or still a little worse off while moaning about their savings rates. Those nearer the bottom are the new lidl, and at the bottom food bank customers. We shall see how it pans out across to the larger part of the population, and what brakes may be needed after (or panic before) the next election.

moneyfoolish

gadgetmind wrote: »

Why do you care about the highs and lows as long as the dividends keep flowing?

Buy shares in a selection of investment trusts, hold the certificates as paper, ignore valuations, and keep banking the dividends. Or if you don't care about capital for the rellies, go the annuity route if old enough to get more income this way, or mix and match.

Because I have enough income to live normally but want to be able to access the capital whenever we need to spend anything which is out of the ordinary run of living i.e. holidays, new cars, new kitchen, etc. and I know from bitter experience i.e. the dotcom boom and bust that if you happen to need a large purchase at the wrong time then a £20,000 kitchen could actually cost you £40,000 if you had to sell equity holdings for the purchase!

talexuser

This article

http://www.schroders.com/tvp/archive?id=Onthemargin&utm_source=OutBrain&utm_medium=Adreferral&utm_campaign=TVP

argues the level of borrowing from brokers to buy shares is at a level which points to a correction soon. How money printing changes the situation now compared to the tech and bank crashes remains to be seen.

KrytenIceCubeHead

rpc wrote: »

Smother her in pancakes and eat her quickly. I think you will be able to recover your losses.

Everyone knows that gold(en syrup) is crashing.

You can't beat a bit of bond-age.

JohnRo

talexuser wrote: »

This article

http://www.schroders.com/tvp/archive?id=Onthemargin&utm_source=OutBrain&utm_medium=Adreferral&utm_campaign=TVP

argues the level of borrowing from brokers to buy shares is at a level which points to a correction soon. How money printing changes the situation now compared to the tech and bank crashes remains to be seen.

No one knows which way is up any more, but it's a long way down. The imposition of ZIRP, alongside vast wealth transfers to the inner circle by the global politburo, via their QE experiment, is skewing even this sort of analysis imho.

Glen_Clark

talexuser wrote: »

Anything to do with links to money printing, especially asset prices, somewhat less housebuilding .....

s.
Well exactly. There isn't a lot of profit in building houses. Houses are not expensive, its the value of the land they stand on thats expensive. The housebuilders got a windfall profit on the value of their land banks as the Government pumps up building land prices.