Stock market - Views?
12 August 2007, 04:56 PM
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Stock market - Views?
Have always dabbled in the stock market. Nothing major, but have "got lucky" recently with BP, Serco and Tesco.
To be honest I only bought BP on the basis that their stock value was going up in line with the price of fuel - so I bought a chunk as the dividends did a nice job of off-setting the cost of all the petrol I was buying and at the same time the price was going up.
After the last couple of weeks, the FTSE has nose-dived and companies like Shell and BP have a P/E ratio less that 10. So I'm thinking this is a good time to buy again. My thinking is that when the dust settles the market will put their money in "safer" instruments like stocks and shares rather than all this derivative/hedge fund b0ll0cks that has got all cocked up recently. More so, the likes of BP and Shell will be considered more "safe" than others.
Also, this chap (Non-Exec of Shell) has just bought £131k in Shell on Friday
Jorma Ollila - Wikipedia, the free encyclopedia
So, a question to those more informed/knowledgeable than myself ... is my strategy sound? If so, do you think the FTSE has hit bottom yet?
To be honest I only bought BP on the basis that their stock value was going up in line with the price of fuel - so I bought a chunk as the dividends did a nice job of off-setting the cost of all the petrol I was buying and at the same time the price was going up.
After the last couple of weeks, the FTSE has nose-dived and companies like Shell and BP have a P/E ratio less that 10. So I'm thinking this is a good time to buy again. My thinking is that when the dust settles the market will put their money in "safer" instruments like stocks and shares rather than all this derivative/hedge fund b0ll0cks that has got all cocked up recently. More so, the likes of BP and Shell will be considered more "safe" than others.
Also, this chap (Non-Exec of Shell) has just bought £131k in Shell on Friday
Jorma Ollila - Wikipedia, the free encyclopedia
So, a question to those more informed/knowledgeable than myself ... is my strategy sound? If so, do you think the FTSE has hit bottom yet?
12 August 2007, 05:13 PM
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You will be safe with Blue Chip Shares over the long term.
No-one knows what the market will do ............ or if it has hit bottom.
TESCO and Sainsburys look good value and Aviva should be purchased as there is £2 a share in those over the next 4 months.
A collapsing market like this is a superb time to make a killing ... stag some shares (like Aviva who swing by large margins) - buy 10,000 Aviva at about £650 = £65,000 ....... they will bounce over 48 hours by about 40p - sell before you have bought and pocket £4000 for 2 days risk
Making money is easy if you have a pair of *****
No-one knows what the market will do ............ or if it has hit bottom.
TESCO and Sainsburys look good value and Aviva should be purchased as there is £2 a share in those over the next 4 months.
A collapsing market like this is a superb time to make a killing ... stag some shares (like Aviva who swing by large margins) - buy 10,000 Aviva at about £650 = £65,000 ....... they will bounce over 48 hours by about 40p - sell before you have bought and pocket £4000 for 2 days risk
Making money is easy if you have a pair of *****
12 August 2007, 05:20 PM
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Mark Faber seems to think the markets have a long way to fall yet, and he has been very accurate in his predicitions in the past!
I certainly won't be pilling back in for some time - a lot of money is lost at the start of bear markets when investors pile in too early.
This credit crunch looks like it really could be the biggie - was watching a good article on Bloomberg yesterday, and the expectations are that things could remains jittery for a month to 6 weeks.
Buffett seems to think cash is king at the moment as well, so I'm going to play safe!
I certainly won't be pilling back in for some time - a lot of money is lost at the start of bear markets when investors pile in too early.
This credit crunch looks like it really could be the biggie - was watching a good article on Bloomberg yesterday, and the expectations are that things could remains jittery for a month to 6 weeks.
Buffett seems to think cash is king at the moment as well, so I'm going to play safe!
13 August 2007, 10:10 AM
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Isn't it worth mitigating a large amount of the risk by buying some form of collective investment product (unit trust/investment trust). All your eggs in one basket, when you are not an expert, just seems too risky. Especially when experts get it wrong and loss tons too.
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13 August 2007, 05:38 PM
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I went for HBOS in the end. Good size to weather any problems and a low P/E. Some recent and decisive management changes. Also a few of its Directors were buying on Friday. Went up by 3.93% today (better performance than Aviva, BP and Shell). But then I'm in it for the long term.
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