SWP's back
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Sadly true.
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Osborne To Raid Pension Funds.
- Thread starter totallywired
- Start date
Millwallawayveteran1988
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This poor start to the year is gaining momentum. Stock markets tend to move downwards a lot quicker when fear takes hold. It wouldn't surprise me in the slightest if the FTSE100 as an example tests the 5000 mark in the next month or so.
I think a few factors have influenced the recent sell off, commodity prices falling and in particular oil prices, a slowdown in China which is something the markets have feared for some time and slowing global growth with the fear that it has been the quantitive easing propping up markets. This together with the recent rise in interest rates in the US.
However, whilst oil prices are falling and could fall further, there is a limit to how low they can go before countries stop producing as they will be losing money at certain sale prices. When supply slows then it is inevitable that demand at some point will outstrip supply and prices will rise. The boss of BP expects this to happen in the second half of 2016.
Markets tend to fall heavily in times of crisis and during or approaching recession. Most of the developed world is not in recession currently and growth whilst low is evident. This sell off and what is likely to come in the next few weeks and months could well be overdone. It is worth keeping an eye on company results during this period because ultimately if earnings are at or above forecasts then the markets will see sense eventually. Shell, unsurprisingly reported results very slightly below market expectations and the share price fell 6%.
Most people have exposure to the markets in their pension schemes whether money purchase or defined benefit. The latter being safer as the pensions are known but poor underlying fund performance within the scheme could lead to bigger deficits and more pension schemes going to the pension protection fund. Not the end of the world but not as good as before! Money purchase isn't great for people due to retire in the next 3/4 months.
It is often said that time in the market beats trying to time the market so sitting tight and investing at your given risk tolerance is usually the way to go. Those that panic and sell when markets fall will often sell too late and buy back too late. Even experts make this mistake.
Governments are not making investing in property for pensions easy going forward with the raise in stamp duty and scrapping of mortgage relief.
I think a few factors have influenced the recent sell off, commodity prices falling and in particular oil prices, a slowdown in China which is something the markets have feared for some time and slowing global growth with the fear that it has been the quantitive easing propping up markets. This together with the recent rise in interest rates in the US.
However, whilst oil prices are falling and could fall further, there is a limit to how low they can go before countries stop producing as they will be losing money at certain sale prices. When supply slows then it is inevitable that demand at some point will outstrip supply and prices will rise. The boss of BP expects this to happen in the second half of 2016.
Markets tend to fall heavily in times of crisis and during or approaching recession. Most of the developed world is not in recession currently and growth whilst low is evident. This sell off and what is likely to come in the next few weeks and months could well be overdone. It is worth keeping an eye on company results during this period because ultimately if earnings are at or above forecasts then the markets will see sense eventually. Shell, unsurprisingly reported results very slightly below market expectations and the share price fell 6%.
Most people have exposure to the markets in their pension schemes whether money purchase or defined benefit. The latter being safer as the pensions are known but poor underlying fund performance within the scheme could lead to bigger deficits and more pension schemes going to the pension protection fund. Not the end of the world but not as good as before! Money purchase isn't great for people due to retire in the next 3/4 months.
It is often said that time in the market beats trying to time the market so sitting tight and investing at your given risk tolerance is usually the way to go. Those that panic and sell when markets fall will often sell too late and buy back too late. Even experts make this mistake.
Governments are not making investing in property for pensions easy going forward with the raise in stamp duty and scrapping of mortgage relief.
whp.blue
Well-Known Member
Sadly true.
Not for the people doing the buying
SWP's back
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Very true.Not for the people doing the buying
Any recession would be two years before then I'd expect.
But whilst I don't doubt you repeating what you've been told for a second, I'm sceptical at what he was told and by who.
How likely do you (and others) think this is?
Looking into the possibility of buying my first house this summer and don't want to lose out. Then again, we're currently paying an awful lot in rent (stupid expensive South) so maybe getting money into something ASAP would be worthwhile?
SWP's back
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A house is a long term investment so you wouldn't be losing out whatever. Negative equity is only a problem if you're looking to make money on a house in the short term. The important thing is affordable repayments in a place you like.How likely do you (and others) think this is?
Looking into the possibility of buying my first house this summer and don't want to lose out. Then again, we're currently paying an awful lot in rent (stupid expensive South) so maybe getting money into something ASAP would be worthwhile?
totallywired
Well-Known Member
vultures preying on families that have fallen on hard times. There is always one.Not for the people doing the buying
Uncle Wally One Ball
Well-Known Member
Dont get hung up on the horrible modern phenomenon of being concerned with house prices. You have to live somewhere, so just make sure you find somewhere you want to live at a price you can afford. If you like living in your house, it matters not what price people value it atHow likely do you (and others) think this is?
Looking into the possibility of buying my first house this summer and don't want to lose out. Then again, we're currently paying an awful lot in rent (stupid expensive South) so maybe getting money into something ASAP would be worthwhile?
Dont get hung up on the horrible modern phenomenon of being concerned with house prices. You have to live somewhere, so just make sure you find somewhere you want to live at a price you can afford. If you like living in your house, it matters not what price people value it at
A house is a long term investment so you wouldn't be losing out whatever. Negative equity is only a problem if you're looking to make money on a house in the short term. The important thing is affordable repayments in a place you like.
My only worry is that my parents have managed to save up a decent amount that they're willing to put towards a deposit. I don't want to spend a fortune on a house (with today's prices) only for the bottom to drop out of the market and be left with a house that I'm paying a lot towards (relatively speaking with the then current house prices & potentially higher interest rates) that I can't shift.
Would another recession completely realign the market or would it be more of a blip in the grand scheme of things? I can't see us staying in the house for longer than around 5 years so would it be worth carrying on renting and waiting to see what happens? But then I guess 5 years is nigh on £90k on rent that's gone down the drain...
Uncle Wally One Ball
Well-Known Member
There's your answer. Im no expert, SWP's back is. But houses go up and down, that's the way it is and you can wait forever trying to find the right time. Generally house prices go up, as Im sure you know, and whatever you pay toward buying your own house is better than paying to buy someone else's house for them. There is a housing bubble at the moment and has been for a few years in my opinion. But dont knock those southerners you complained about too much. Thankfully the greedy stupid cunts mortgaged themselves so far up to the tits that any crash would leave them and so the rest of the UK completely in the shit. As such, the government does as much as it can to sustain pricesMy only worry is that my parents have managed to save up a decent amount that they're willing to put towards a deposit. I don't want to spend a fortune on a house (with today's prices) only for the bottom to drop out of the market and be left with a house that I'm paying a lot towards (relatively speaking with the then current house prices & potentially higher interest rates) that I can't shift.
Would another recession completely realign the market or would it be more of a blip in the grand scheme of things? I can't see us staying in the house for longer than around 5 years so would it be worth carrying on renting and waiting to see what happens? But then I guess 5 years is nigh on £90k on rent that's gone down the drain...