So whats ur plans for doomsday?

hedger

Every where I turn (financial magazines, on here, news etc) smarter people tha me are predicting financial meltdown for the global economy especially for property and investments (of which I have both). what are you plans to protect yourself? Do you cash in your investments before they substantially depreciate or do you look at it on a long term view.
I am very edgy about all of this......

dunstonh

You mean the same smarter people that put us in this position in the first place?

I personally dont see this as much different to other events that have occurred in every decade previous. This time round though we have 24 hour media coverage, less fact reporting than ever before and a desire to be sensationalist and dumb down the news. You would think this is the first time there has ever been a potential down turn or slow down in the economy.

There are areas of potential and areas where there are not. Volatility is likely to continue so you just make sure you rebalance and take advantage of the volatility.

[Deleted User]

it is when the whole nation is gloomy that the tide starts to turn. I have no debts and a spread of investments ie ns&i savings certs, savings in banks/building societies, gilts and also now in equities. Spread the eggs into several baskets and you will sleep at night

Primrose

Having lived through the stockmarket crash of 87 and grown a lot older and wiser, I realise that all you can do is have a balanced portfolio and sit tight. Things do turn around eventually. If you have money you can't afford to lose, keep it in a high paying interest account. As long as you can afford to pay for the roof over your head, it's best not to panic about stockmarket volatility and take a long term view. When you reach retirement and stop earning, I think then is the time to become less speculative, but even then you still need to be in the stockmarket to hedge your investments against future inflation.

purch

financial meltdown for the global economy

Well if that happens then all money will be worthless.....so what's the point of worrying about money ??

It's pretty clear that what has become, in the last 50 years, the 'fashionable' way of avoiding downturns and recessions, by Inflating the money supply, has/is become(ing) redundant (and not before time)

They will need to think of another way to avoid this downturn, this time around.

Unfortunately the early signs are that they havn't.

kingmonkey

I've started target practice so that I can protect my potato crop

free4440273

ftse and dow up substantially today: bear market rally? it's gotta be! when will the bulls capitulate:whistle:

1echidna

Good question 'hedger' I had thoughts of posting a similar one myself.

Being the ignoramus that I am I can't understand why share prices are rising with all the bleak news. Perhaps people will only take fright at steeply rising unemployment figures and drastically cut company profits. I guess people have to put their money somewhere. I notice a few pundits on radio four are saying that they feel it is a bear market rally and only temporary. I too can't believe that the large twin shocks of the credit crunch and the oil price hike have anywhere near worked their way through. Wish I had a crystal ball.

EdInvestor

I agree that much of the doom and gloom is media and internet driven. Since not a single country has yet gone into recession even though the credit crunch has been under way for almost a year, it seems a bit silly to worry about financial meltdown.

Even inflation of 5% is hardly very worrying when you consider it was routinely around the 25% level for years in the 1970s.

Many of the doomsters appear to be very young and thus have probably only experienced the last 15 years or so of positive growth.They would have no idea of the relative nastiness of downturns - even a mild one could look like armageddon.

But as someone said the other day, why would you bother about a fall in the value of your house of 5% - or even 20% - if it's gone up by 150% over the last 10 years and the house you're going to buy will come down by a similar amount?

1echidna

EdInvestor wrote: »

I agree that much of the doom and gloom is media and internet driven. Since not a single country has yet gone into recession even though the credit crunch has been under way for almost a year, it seems a bit silly to worry about financial meltdown.

Even inflation of 5% is hardly very worrying when you consider it was routinely around the 25% level for years in the 1970s.

Many of the doomsters appear to be very young and thus have probably only experienced the last 15 years or so of positive growth.They would have no idea of the relative nastiness of downturns - even a mild one could look like armageddon.

But as someone said the other day, why would you bother about a fall in the value of your house of 5% - or even 20% - if it's gone up by 150% over the last 10 years and the house you're going to buy will come down by a similar amount?

I can't see age or experience correlating with expressions of not to worry too much and gossip has always existed whether it be media driven or just old fashioned word of mouth. It may more likely have something to do with whether one sees it as in one's interest to talk the market up or down. In this case I perceive the most neutral observers see a downturn.

dunstonh

I can't see age or experience correlating with expressions of not to worry too much

Of course it does. There are people in their 30s who have never experienced a recession let alone a slow down in growth. They have spent their working life in the good times where property only goes up in value and there is no need to save for a rainy day as you can borrow money whenever you want something.

In this case I perceive the most neutral observers see a downturn.

They perceive a downturn because they are told there is one. Often by members of the public who wouldnt know if there is one or not. The facts are as Ed says. There is no recession currently just a slow down. Yet some of the mainstream media coverage has been disgraceful scaremongering.

gossip has always existed whether it be media driven or just old fashioned word of mouth.

Media used to report facts. Now they report opinion and scaremongering sells.

t may more likely have something to do with whether one sees it as in one's interest to talk the market up or down.

It dont think it makes any difference here. However, the facts cannot be argued with. We are not in recession (at time of posting). We dont have historically high interest rates and we dont have historically high inflation. There are some concerns going forward but there are always concerns of one sort or another.