Where to invest lump sum now in 2022 - a fund or a property

adindas

Deleted_User said:

Albermarle said:

 but perhaps I should be steering away from anything shares related at the moment?

Why? 

Presume like a lot of inexperienced investors , you think there will be a time when there will be lots of good news and this will be the right time to buy .

At which point the market will have already reacted to the good news and share prices will already have gone up. Similarly at the moment the market has priced in what it thinks the impact of Ukraine will be on global share prices. Of course the market can be wrong but less likely to be wrong than an individual like you or me.

I would say especially as you are highly exposed to property risk already . you need to diversify into other investment areas .

 Which way is the wind blowing? Today SSW , tomorrow W apparently . Next week , maybe N , not sure , after that totally unpredictable , just like the stock and property markets.

Currently the markets are massively inflated. 

A good single asset example of this is the recent Gamestop story. People banded together and started buying up stock of a worthless company. The ball started rolling and this worthless company's shares went sky high. Those that started the ball rolling made a small fortune, but the moment people started to withdraw the whole thing collapsed. People lost everything. 

When money is printed to artificially inflate the markets you're kinda creating a gamestop situation.

If people get jittery (as they're doing) and start to sell you could end up with nothing. 

The only thing that will always hold it's real, intrinsic value is property, land, tools, oil, gold etc. The price can fluctuate, but it had intrinsic value so will never become completely worthless. 

If you personally feel jittery and you sense others are too, it's probably not the time to invest. It's all about perception and trust.

What happen to Gamestop (GME) is widely known as "Short Squeeze". The hedgies are shorting it (tried to push the price down) but got squeezed, thus the price is skyrocketing. Instead of price went down the price went up as the retailer investors are doing simultaneous action by keep buying it to push the price further up so the short sellers got margin call and need to cover their short position.

When the hedgies are covering their short position the price start to fall.

Some people are making a lot of money form this short squeeze game.

Short squeeze is a momentum play and has never been intended for long term investment.