Deep Singh

The major indices have rallied over the last few weeks mainly on the back of the feel good factor of the USA election (imho)

Now that this is over and people realise that the financial problems affecting most of the world are still here and getting worse, will we see a gradual decline in the major indices?

Pete

I think they,ll go and test the bottom they hit a week or so ago, then maybe flat for a while, i think you,ll get rallies in between however, but it,s knowing how to play those.

FlightMan

Well, on clay it's best to drag your opponet out of position with heavy ground strokes, then come to the net for a winning volley or drop shot.

On grass, get to the net quick. Kill the point.

lozgti

Thought it was amusing the FTSE got excited when America was planning cuts.

Now it has happened at home on a grand scale,nothingseems to have happened (apart from it being down a lot.Probably recovered now)

stuart n

The FTSE lost 5.6% today with the news of the interest rate cut.
The markets will still go up and down like a rollercoaster for the time being.

NotoriousREV

200 up tomorrow on the FTSE

Robert Rosario

Hedge it with VW?

john banks

I got rid of my last FTSE holdings on the last bounce. The likely earnings drop in a recession makes the valuations look high. Sold nearly all the precious metals. I'm about 90% in cash now. I mistrust GBP to hold value though.

alloy

The euphoria of Obama and Interest Rate cuts are past us now, there is nothing but the dissmal economic future to concentrate on, the markets can only come off

Deep Singh

Now thats what I like to hear!

Pete

That,s not nice...

Deep Singh

John what is the answer for people in your position? ie large cash amount, assets(inc precious metals) falling, low and falling interest rates, GBP value that will probably follow.
Whats your strategy now for preserving the value of your cash?

Thanks

Gear Head

iTrader: (2)

Drug dealing!

Matteeboy

People I know with plenty of cash are just spreading it across many banks as savings. Which is what we've (with cash but not "plenty") done too. Cash is king - apparently.

Leslie

How many years will it take to pay off the national debt that is mounting up and when do you think that the IMF will tell Flash and that dear friend of his that they can't borrow any more cash?

Les

Deep Singh

Matt; with IRs falling and the value of sterling following then just having the cash in bank/building society accounts may not be the best thing

john banks

Deep, I'm more worried about simply preserving the value of my pot in GBP, which I'm doing so far, none of my savings are linked to the BoE base rate at present. I think after a period of low inflation which will hopefully not erode GBP too much we might have a stocks/commodities rally, followed by economic recovery and then house price inflation again.

I don't trust USD, Euro or GBP long term. If I could put a larger part in Yen I would do, I wanted to before and bought Jap stocks. The currency movements have offset a lot of the losses on the stocks.

I think/hope a lot of the bad news is in the value of GBP already. The USD could have a nasty correction again. That would be a good time to have precious metals again.

Bottom line is I'm only hoping like everyone else to come out as unscathed as possible. I'm pretty close to being able to buy a nice house around here without a mortgage, which was beyond me before.

alloy

A balanced investment portfolios is your only chance of redcuing any systamatic or unsystamatic risk in this economic climate. That will protect your capital as best as possible.

The equiity markets are risky always, right now they are of heightened risk and as with anything in life balanced equally by the potential returns available. Greater the risk, higher the potential return. This climate there is no right or wrong way to use your capital its all dependent on your objectives and risk profile.

NotoriousREV

Damn I'm good. Got a bit worried around 14:00, though!

stuart n

It closed up less than 100 points didn't it

NotoriousREV

It closed around 113 points up but peaked at around 185 points up

Petem95

We've not really even started to see the full effects of the downturn on the jobs market yet, however forcasts for the economy seem to be getting worse and worse so I certainly can't see the FTSE breaching 5000 anytime soon, and there's probably a good chance it'll be below 4000 again before the year is out.

There's still plenty of decent fixed rate bonds out there at 6-7% which seems like a good place for any spare cash at the moment.