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SillyBilly

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1 hour ago, StivePesley said:

Typical isn't it. The first time in my life I've managed to save a bit of cash and it's sat in an ISA getting sod-all% and I can't invest in the stock market as the economy is tanking. Might as well spend it then eh?

I hear Whiskey is a good investment!

I'm a complete novice when it comes to investing so take what I say with a pinch of salt but I'd say that there is never a time that you "can't" invest or even a "bad" time. Time is probably on your side and the beauty of compounding and dollar cost averaging will likely negate anything that happens in the short term with your investments. ?

Depending on how long term you are thinking of course, I'm talking 7 years+. If timing the market was that easy we would all be drinking Champagne on a yacht right now! You could perhaps argue that with markets falling at the minute you are more likely to find yourself stocks that aren't massively overvalued so although you might take a hit as it falls further you can expect it to bounce back long term anyway! 

long term long term long term. 

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2 hours ago, StivePesley said:

Typical isn't it. The first time in my life I've managed to save a bit of cash and it's sat in an ISA getting sod-all% and I can't invest in the stock market as the economy is tanking. Might as well spend it then eh?

I hear Whiskey is a good investment!

It would be better off in interest paying current accounts and regular savings. 

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5 hours ago, StivePesley said:

Typical isn't it. The first time in my life I've managed to save a bit of cash and it's sat in an ISA getting sod-all% and I can't invest in the stock market as the economy is tanking. Might as well spend it then eh?

I hear Whiskey is a good investment!

Echo Chris,

All depends on timescale. Markets, any market moves in cycles. For instance, oil will not stay low forever, no matter what the doomsayers say. Oil will bounce when demand exceeds supply for sure. You only have to digest news of projects being shelved to see into the future. How long it takes is just guesswork on global demand pending market conditions. But at some point the tide will turn.

http://oilprice.com/Energy/Crude-Oil/27-Billion-Barrels-Worth-Of-Oil-Projects-Now-Cancelled.html

 

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http://www.bbc.co.uk/news/business-35362397

Now the BBC are reporting stuff and the Guardian is liveblogging the World Economic Forum. All of it reads pretty scary. http://www.theguardian.com/business/live/2016/jan/20/davos-2016-day-1-economic-fears-markets-migration-robots-live

Just grabbed a word with Philip J. Jennings, general secretary of UNI Global Union, about the turmoil in the markets.

Are we heading into a crash?

Yes, we are heading for a crash, I’m worried about it.

Emerging markets were meant to pull us through this crisis. but China is slowing, and the impact will ripple out across the developing economy. And the jobs situation across the global economy will not improve

How bad could it get?

We are worried abut the economic climate - how deep the crash will be. Those RBS analysts [who said to sell everything] may be right - “cataclysm” could be the right word to use.

What should be done?

We need leadership. The G20 needs to fulfil the promise they made at the last financial crisis, to not just save the banking sector but to also put the economy back on track.

The private sector need to understand that lack of investment isn’t helping, and we need to push wages higher. The G20 needs to put demand back in the economy.

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http://www.bbc.co.uk/news/business-35359689

UK jobless rate at 10-year low but wage growth slows

how do they really get away with this?

In ten years, the number of people claiming DLA has risen by almost 35% (from 2.4 million to 3.3 million).

Nearly 40 per cent of graduates are looking for work six months after graduation, while a quarter are still unemployed after a year, according to new research.

 

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43 minutes ago, Shang said:

http://www.bbc.co.uk/news/business-35362397

Now the BBC are reporting stuff and the Guardian is liveblogging the World Economic Forum. All of it reads pretty scary. http://www.theguardian.com/business/live/2016/jan/20/davos-2016-day-1-economic-fears-markets-migration-robots-live

Just grabbed a word with Philip J. Jennings, general secretary of UNI Global Union, about the turmoil in the markets.

Are we heading into a crash?

Yes, we are heading for a crash, I’m worried about it.

Emerging markets were meant to pull us through this crisis. but China is slowing, and the impact will ripple out across the developing economy. And the jobs situation across the global economy will not improve

How bad could it get?

We are worried abut the economic climate - how deep the crash will be. Those RBS analysts [who said to sell everything] may be right - “cataclysm” could be the right word to use.

What should be done?

We need leadership. The G20 needs to fulfil the promise they made at the last financial crisis, to not just save the banking sector but to also put the economy back on track.

The private sector need to understand that lack of investment isn’t helping, and we need to push wages higher. The G20 needs to put demand back in the economy.

Given who he is and who he represents, it's hardly surprising though that he's talking it down, wanting more investment and higher wages.

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Union leader calls for higher wages shock.

You could equally argue that higher wages at a time of low unemployment (or higher employment) is inflationary and high inflation will cause the private sector and Governments to invest less

For every economist there's a different view..............

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A union leader calling for job stability and higher wages is no more biased than a business leader calling for zero hour contracts and a flexible workforce......governments should decide which s in the best interests of their population and fix interest and tax rates accordingly.

Economic ups and downs will always happen, its how governments decide to deal with it that matters to us. All this talk of "market forces" is absolute bollux. Market forces are determined by government policy. For example, if governments shut tax havens and invested the lost tax back into growth and infrastructure then economic dips could be levelled out somewhat. Similarly, if governments reduce legislation on financial sectors then crashes are more likely, if not certain, to occur.

History teaches us all this, we choose not to learn from it.

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5 hours ago, LesterRam said:

http://www.bbc.co.uk/news/business-35359689

UK jobless rate at 10-year low but wage growth slows

how do they really get away with this?

In ten years, the number of people claiming DLA has risen by almost 35% (from 2.4 million to 3.3 million).

Nearly 40 per cent of graduates are looking for work six months after graduation, while a quarter are still unemployed after a year, according to new research.

 

Need to add on those who are self-employed claiming tax credits which in economic terms is a generous JSA benefit. It would be cheaper for the tax-payer for them to claim JSA and give the job up (that demonstrates the economic value of the job) but then the unemployment stats wouldn't look so good... The economy is in really bad shape when we realise how many non-jobs there are, people need quality jobs for this to turn around! That is why IMO the chancellor had to do his U-turn, he would have created a bow wave of deflation at a time when inflation is so weak, spending would have collapsed. The productive economy has been hollowed out and so now spending in the economy is driven by a government running a deficit handing money to businesses and people which can't turn enough of a profit to live off. That is not long term prosperity, its a ticking time bomb. Massive increase in tax receipts or massive spending cuts to solve.

 

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I think I've come to a decision about my shares.... I'm just going to leave them for the time being and wait this out.

I've stopped my monthly direct debit though (could be a silly thing to do at the moment...), my plan is to buy the Lloyds Bank shares when they come available and start putting in more money once the markets start to improve.

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6 hours ago, LesterRam said:

http://www.bbc.co.uk/news/business-35359689

UK jobless rate at 10-year low but wage growth slows

how do they really get away with this?

In ten years, the number of people claiming DLA has risen by almost 35% (from 2.4 million to 3.3 million).

Nearly 40 per cent of graduates are looking for work six months after graduation, while a quarter are still unemployed after a year, according to new research.

 

I heard a BBC report say that the majority of the jobs went to E.U nationals. Which begs the question how does this lower the jobless rate when there have been so many redundancies recently?

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-1x-1.png

Nice to see U.K is punching above its weight again. Other than Australia there isn't a banking sector more on the hook than our own to this Chinese downturn. It all smells of Abu Dhabi 2008 again, British banks lending shed loads of money out funding real estate speculation. I'm sure they have learned the lessons from last time though...

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19 minutes ago, SillyBilly said:

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Nice to see U.K is punching above its weight again. Other than Australia there isn't a banking sector more on the hook than our own to this Chinese downturn. It all smells of Abu Dhabi 2008 again, British banks lending shed loads of money out funding real estate speculation. I'm sure they have learned the lessons from last time though...

It's not just the banks though... The FTSE has a ton of mining & oil companies that are suffering because of the China slowdown.

If there is a recession around the corner, interest rates are still at record lows and China as well as other developing countries have gone to **** - I just don't see where the recovery is going to come from? More QE and negative interest rates?

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14 minutes ago, GeneralRam said:

It's not just the banks though... The FTSE has a ton of mining & oil companies that are suffering because of the China slowdown.

If there is a recession around the corner, interest rates are still at record lows and China as well as other developing countries have gone to **** - I just don't see where the recovery is going to come from? More QE and negative interest rates?

Can't see them doing much else if this continues, perhaps people's QE as well. What does that do in reality though, buy another a year or so by salvaging asset prices? It wouldn't actually be a recovery, just more can-kicking until we take an even bigger slap. There is no recovery without a huge crash, its that simple. Interest rates need to rise to historical norms and debt needs to be defaulted on. Can any of that happen without blood on the streets? No, too far gone and therein lies the problem.

The market peaked a few months after QE3. Downhill thereafter. QE4 and I'd buy the S&P 500 for another ride and get out at the first sign of a tapering. How depressing.

 

 

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