Shares - the next crash?

Malthusian

moneyfoolish wrote: »

However, it also taught me that I didn't have the temperament for investment as I was in a blind panic until I sold everything and realised I was much more worried by the loss of my money than the potential gain!

Every single human being feels that way, except in very specific circumstances, e.g. visiting a casino.

(Very brief economics lecture: money has diminishing marginal utility, meaning the more money you have, the less happiness each additional £1 buys you; meaning losing £1 brings more unhappiness than gaining £1 brings happiness; meaning everyone who hasn't been temporarily deranged by flashing lights and pictures of fruit is more worried about losses than gains.)

Successful investment is not about being unaffected by losses, but realising that a paper loss is not a real loss unless you panic and cash out.

However, I'm already wavering because of the potential financial crisis in Greece!

Potential crisis? Is this post from 2012?

You've seen that even if you are unlucky enough to invest before a crisis, stockmarket investment still beats cash over the long term. But it's your choice.

badger09

Malthusian wrote: »

Every single human being feels that way, except in very specific circumstances, e.g. visiting a casino.

(Very brief economics lecture: money has diminishing marginal utility, meaning the more money you have, the less happiness each additional £1 buys you; meaning losing £1 brings more unhappiness than gaining £1 brings happiness; meaning everyone who hasn't been temporarily deranged by flashing lights and pictures of fruit is more worried about losses than gains.)

Successful investment is not about being unaffected by losses, but realising that a paper loss is not a real loss unless you panic and cash out.

Potential crisis? Is this post from 2012?

You've seen that even if you are unlucky enough to invest before a crisis, stockmarket investment still beats cash over the long term. But it's your choice.

You are, of course correct.

However, 'long term', for someone aged 71 is likely to be considerably shorter than someone aged 31, 41, 51 etc:cool:

EdGasket

How about an alternate view? Cash savings will be wiped out due to low interest but high inflation and meanwhile equities and hard assets like gold soar.

taktikback

The stage is set for a total corporate takeover. NHS doomed, welfare state on borrowed time, fracking rigs coming to every village, North Sea fished to extinction, Murdoch's Brexit tabloids back in charge of picking UK governments and running the country again. Strikes, robots and riots, trade wars, real wars, Britain, Great, again.

Ah get born, keep warm
Short pants, romance, learn to dance
Get dressed, get blessed
Try to be a success
Please her, please him, buy gifts
Don't steal, don't lift
Twenty years of schoolin'
And they put you on the day shift
Look out kid
They keep it all hid
Better jump down a manhole
Light yourself a candle
Don't wear sandals
Try to avoid the scandals
Don't want to be a bum
You better chew gum
The pump don't work
'Cause the vandals took the handles

mollycat

taktikback wrote: »

Ah get born, keep warm
Short pants, romance, learn to dance
Get dressed, get blessed
Try to be a success
Please her, please him, buy gifts
Don't steal, don't lift
Twenty years of schoolin'
And they put you on the day shift
Look out kid
They keep it all hid
Better jump down a manhole
Light yourself a candle
Don't wear sandals
Try to avoid the scandals
Don't want to be a bum
You better chew gum
The pump don't work
'Cause the vandals took the handles

Snowflake!

We left school at 16!

no1catman

China I've read (it was on youtube so may not be true) has been selling US Dollars, Iran is doing the same. If the Dollar goes down, and the Fed has to increase interest rates because not enough Treasury Bonds are being bought - we've got problems!

If the problems with the Italians banks get to the stage of the sh** hitting the fan, and Italy defaults, comes out of the Euro, then the uncertainty - the Italian economy is not like Greece - it will have an effect - (Houston) we've got a problem.

Jeems

Every year on this board since at least 2012 people have been saying "this is the year". House price crash coming, interest rates will go up, sell your shares now we are at the top of the market etc etc. I've been burnt by being cautious in the past - I mean, buying a 1 bed flat in West London in 2011 for 350k, the general consensus among everyone was that the price was crazy (didn't buy - same flat sold for 500k last year).

Hindsight is a wonderful thing. My advice - if you have maxed out the various "safe" options eg high interest current accounts, and have spare cash - invest now. I started my investment journey very recently and even though its early days and there could be WW3 on Monday, my investment has grown more in month than it would have done in an entire year in a cash ISA.

inflationbuster

The Trump rally has only just started.

I'm holding a number of commodity stocks and one l hold is up 200% with much further to rise. I expect further rises due to infrastructure projects that will be undertaken by the Trump administration. China is also looking bullish.

Deregulation of banks to me means a possible re-rating upwards of the banking sector.

StellaN

inflationbuster wrote: »

The Trump rally has only just started.

I'm holding a number of commodity stocks and one l hold is up 200% with much further to rise. I expect further rises due to infrastructure projects that will be undertaken by the Trump administration. China is also looking bullish.

Deregulation of banks to me means a possible re-rating upwards of the banking sector.

Commodity stocks are well up at the moment but that could soon change - who knows?

Pincher

What 2016 taught me was holding cash is no guarantee of safety, as my net worth has definitely taken a hit, if I'm counting by EUROs or dollars.

Too many things happening, but the rise of isolationism and protectionist attitudes can have profound consequences.

If the EURO collapses, there will be much higher currency risk for doing business. Sterling could be a safe haven one moment, and a floundering basket case the next.

Need more international diversification.