Time to retreat to cash?

grebbo

Lokolo wrote: »

Not entirely true. Inflation is 3.3% (or 4.3% for RPI) which you can easily get this rate + more in a savings account.

Don't believe everything you're told

grebbo

jem16 wrote: »

Highest rate is 6.5% gross

Basic rate taxpayer = 5.2% net
Higher rate taxpayer = 3.9% net

Not great and inflation in real terms is higher.

Exactly...pretty p!ss poor.

Hence why I have a rainy day cash fund, Cash ISA allowance, and everything else put into investments. If you can't achieve 6.5% growth on your investments then stay in cash.

Conrad

One of those Lords of the Universe, Ronald Cohen I think, recently said you only make worthwhile money by buying in the downs when no one else is, a sentiment consistently made by Warren Buffett. Buy when there's blood on the streets, and all that.

I am scared about buying Bank shares now, but surely this is the time to buying, when no one else is?

I am seeing the likes of HSBOS swamped with mortgage business now as there are far less lenders out there now. They have always been a fairly cautious UK mortgage lender from my perspective, but I'm not sure what thier exposure to CDOs is.

Browntrout_2

No one rings a bell at the bottom.

I just bought Martin Currie North American and Neptune US Opps

100% in equities

Aegis

Conrad wrote: »

One of those Lords of the Universe, Ronald Cohen I think, recently said you only make worthwhile money by buying in the downs when no one else is, a sentiment consistently made by Warren Buffett. Buy when there's blood on the streets, and all that.

Depends what you mean by "worthwhile" of course. In the long run, it's not when you buy in the market but how long you spend in it. There are exceptions of course, but if you diversify sufficiently and employ a drip-feed, then in the long run you'll probably do rather well, albeit not as well as someone who gets lucky and buys the right stock at the right time and makes a fortune out of it.

ad44downey

Conrad wrote: »

I am seeing the likes of HSBOS swamped with mortgage business now as there are far less lenders out there now. They have always been a fairly cautious UK mortgage lender from my perspective, but I'm not sure what thier exposure to CDOs is.

Quite often shares go down for a good reason. And this is most certainly one of them. Bank shares have alot further to go - DOWN!!

MABLE

ad44downey wrote: »

Quite often shares go down for a good reason. And this is most certainly one of them. Bank shares have alot further to go - DOWN!!

Yeh right. Just like the oil price keeps going up. Is that then because there is a shortage of oil. I dont think so!

gfplux

grebbo wrote: »

Exactly...pretty p!ss poor.

Hence why I have a rainy day cash fund, Cash ISA allowance, and everything else put into investments. If you can't achieve 6.5% growth on your investments then stay in cash.

Hello Conrad,
Have you managed 6.5% growth on your investments in the last 12 months. As I said I am down 9.4%. I am a cautious and normally buy to hold.
What was your approach to manage over 6.5% in the last 12 months.

martinman3

ad44downey wrote: »

Quite often shares go down for a good reason. And this is most certainly one of them. Bank shares have alot further to go - DOWN!!

This is one of my all-time favourite threads which proves that you should never invest without knowing the reason why the investment is cheap.;)
http://forums.moneysavingexpert.com/showthread.html?t=553760

I wonder how convict90210 feels now.

Mr_Mumble

hedger wrote: »

Sure we are all told investing is long term but with every man and his dog predicting carnage for the next few years is it time to get out and into cash (even to re-buy at much lower prices)

When every man and his dog (or the "shoe shine boy" as the old Joseph Kennedy story goes) talked about a booming stock market it was a sign of an imminent crash. Perhaps your comment is a signal of a bottom in the market!