Crash investing

Doom_N_Gloom

Hi, new to this forum so here goes;
I believe the future in the index is heading for a crash of 1930s' proportions (so I am told,  as too young to remember). so I would want to wait until the index crashes and then invest? Though in the mean time I was looking for places to safely put money.

Doom_N_Gloom

Also, what about "bail in" a bank scheme designed to steal your money which I heard was signed up to after the Cypriot scandal being viewed by the financing sector as a success , alas the creditors (ordinary people who invested)  don't agree. So where can you put money to avoid banks but keep it safe and still get access?

shinytop

Yes, if the market is about to crash very soon then definitely wait and invest when it's right at the bottom.  If you do that you can't go wrong.

ratechaser

Doom_N_Gloom said:

Hi, new to this forum so here goes;
I believe the future in the index is heading for a crash of 1930s' proportions (so I am told,  as too young to remember). so I would want to wait until the index crashes and then invest? Though in the mean time I was looking for places to safely put money.

Hi and welcome. If you could tell us how long it will be until this crash happens, it will be easier for us to guide you as to where your money could go in the meantime. Are we talking 1 month? 6 months? A year? 5 years?

Actually if you would like to PM me with the exact date of 'Black XXXday', and when the market will hit bottom, that would be even better. 

In all seriousness though, that's the problem, there is ALWAYS a crash coming. But no one knows when. So you could be missing out on years of growth waiting for something that is still a long long way away. Your call, your risk appetite. Put it in premium bonds if you want to preserve capital and come as close as possible to mitigating inflation risk...

EDIT: ok, just seen your second post. Whilst not impossible, I'm afraid that does rather smack of paranoia. The government has plenty of other way to extract money from us through taxation and benefit cuts before anything as nuclear as a savings haircut would be considered - that's stone cold political suicide for any party...

dunstonh

I smell a wind up.

Linton

Doom_N_Gloom said:

Hi, new to this forum so here goes;
I believe the future in the index is heading for a crash of 1930s' proportions (so I am told,  as too young to remember). so I would want to wait until the index crashes and then invest? Though in the mean time I was looking for places to safely put money.

You should always invest as if there is a crash coming.  There always is, but no-one ever knows when.  If you have been born with superhuman predictive powers that disprove this assertion you dont need my help.

So you have two options:
1) Always invest cautiously so as to minimise the effects of any crash.
2) Whilst you are many years away from needing the money carry on investing regardless since what happens in the short term will be long forgotten and irrelevent in 20 years time.

Option 2 is likely to provide you with higher returns over the long term than option 1 since given sufficient time the market always rises. If you did not believe that you would be foolish to invest in the first place.

The danger with acting on your beliefs of a crash is that the number of times you get it wrong are likely to lead to greater losses than the few times you get it right.

westv

Do I need to factor this in as well as a Zombie apocalypse or can I put that on the back burner when I calculate my SWR?

Bravepants

OK wait for the crash to happen and then buy into the market.

But hang on ... what if you're wrong and the crash worsens after you've bought in? You might think you're OK but there is a lot of talk of dead cats bouncing all over the place around here. I'd invest my ISA money in a cattery if I were you.

Janin1992

The idea has legs. Some crypto exchanges have low liquidity and as result experience mini crashes (and mini bubbles) every day. And sometimes experience large flash crashes where you can double your investment. You need to know what you are doing though.

grumiofoundation

Janin1992 said:

The idea has legs. Some crypto exchanges have low liquidity and as result experience mini crashes (and mini bubbles) every day. And sometimes experience large flash crashes where you can double your investment. You need to know what you are doing though.

So does a dead cat....

ratechaser

grumiofoundation said:

Janin1992 said:

The idea has legs. Some crypto exchanges have low liquidity and as result experience mini crashes (and mini bubbles) every day. And sometimes experience large flash crashes where you can double your investment. You need to know what you are doing though.

So does a dead cat....

Depends how it died...