How much more serious can Money Market Get.

[LordThornber]

Howie, you might be getting lucky today mate as Wall St has opened strongly, reacting nicely to George Dubyas words.

 

Martyn

[Guest JudgeMental]

ohgrandma - 2008-09-30 2:55 PM

 

Gosh! There's some rich people on this thread at the moment. Ria. (lol)

 

Not for much longer *-)

[ohgrandma]

We must all stay positive, As one door closes another opens. Ria.

[Mick H.]

There's always a light at the end of the tunnel. Shame it's just a train coming the other way.

 

Mick

[Hymer C 9.]

howie - 2008-09-30 11:46 AM

 

Just bought some RBS shares at £1.82. Mad or what!. Well buy low sell high has always been the maxim, and while they might go down some in the near future the medium to long term should ensure a healthy profit. No good moaning when when there,s a downturn in your investments as you don't put money into these companys for their benifit but only in the hope of making money for yourselves, and as always, its only a loss when you actually sell. Cash is King!. Well maybe, but to good to pass this one up and lets see where they are in six months time.

 

Any more tips Howie, could do with a few new shares, cashed all mine six weeks ago but would not mind a little punt. Carol.

[Mel B]

We bought some Kingston Communications shares when they first floated at, I think, around £2.75 each then they wen't into orbit at around £17 each, trouble was by the time we got the info on them to be able to sell them they'd dropped and now they're worth hardly anything. We're just hanging on to them for their nostalgia value now!!! :-S

 

Missed out on M&S shares though - when it crashed a few years ago I told hubby we should buy some, oh no, wouldn't do it ... now what are they worth ... they'd have more than made up for our 'loss' on the KC ones ... bah humbug. :-(

[howie]

Hymer C 9. - 2008-09-30 7:43 PM

 

howie - 2008-09-30 11:46 AM

 

 

 

Any more tips Howie, could do with a few new shares, cashed all mine six weeks ago but would not mind a little punt. Carol.

One tip I can give you is to never take tips on investment from anyone Carol. Nothing wrong reading up on possible shares to buy, but if these guys are so good then why are they still working for others. Got into shares during the 70s when I was earning good money and wanted a better return than the banks and building societies could offer, but let me stress this was money I could afford to lose and this should apply at all times.

Lets use RBS as a example. Bought these when they were still Nat West and one of my favourites. Safe as houses (could have phrased that better) if somewhat unspectacular, but with a decent dividend and plenty of scope for buying and selling. Buying and selling is the key word here as to often shares are bought and then tucked away, which seems to defeat the whole object of maximising your profits.

Lets say the interest from a B/S is 5% pa. All i,m looking for is to better that. The shares I bought this morning cost £1.82, so taking into account dealing costs and commission all it takes is a rise of say 7% to equal anything a B/S has to offer, which means when RBS reaches £1.95 i,ll have achieved my goal, and don,t forget that this is only one transaction within a 12 month timescale and its not unusual for me to buy and sell up to half a dozen times a year.

Sounds to simple?. Always a chance of getting your fingers burnt, but if you stick with a 'Blue Chip' company, always remember that you gain or lose only when you sell and are never afraid to buy and sell when it suits you then beating that 5% is always on.

Tell you what Carol. Always had a soft spot for you, so why don,t you just pm me your bank details and i,ll make sure of finding a good home for that money of your's. xxx

 

[LordThornber]

howie - 2008-09-30 11:49 PM

 

Hymer C 9. - 2008-09-30 7:43 PM

 

howie - 2008-09-30 11:46 AM

 

 

 

Any more tips Howie, could do with a few new shares, cashed all mine six weeks ago but would not mind a little punt. Carol.

One tip I can give you is to never take tips on investment from anyone Carol. Nothing wrong reading up on possible shares to buy, but if these guys are so good then why are they still working for others. Got into shares during the 70s when I was earning good money and wanted a better return than the banks and building societies could offer, but let me stress this was money I could afford to lose and this should apply at all times.

Lets use RBS as a example. Bought these when they were still Nat West and one of my favourites. Safe as houses (could have phrased that better) if somewhat unspectacular, but with a decent dividend and plenty of scope for buying and selling. Buying and selling is the key word here as to often shares are bought and then tucked away, which seems to defeat the whole object of maximising your profits.

Lets say the interest from a B/S is 5% pa. All i,m looking for is to better that. The shares I bought this morning cost £1.82, so taking into account dealing costs and commission all it takes is a rise of say 7% to equal anything a B/S has to offer, which means when RBS reaches £1.95 i,ll have achieved my goal, and don,t forget that this is only one transaction within a 12 month timescale and its not unusual for me to buy and sell up to half a dozen times a year.

Sounds to simple?. Always a chance of getting your fingers burnt, but if you stick with a 'Blue Chip' company, always remember that you gain or lose only when you sell and are never afraid to buy and sell when it suits you then beating that 5% is always on.

Tell you what Carol. Always had a soft spot for you, so why don,t you just pm me your bank details and i,ll make sure of finding a good home for that money of your's. xxx

 

Carol, Howie must have read my mind. A perfect description of what I do with the market. About 10 years ago, an advert appeared in my local paper asking for anyone interested in forming an Investment Club, you know the thing, a gang from the pub or the gym etc.

 

Well long story short, I was Secretary for about 3 years and and learnt loads. Particularly from one guy who showed me the benefits of what Howie does, he called it "in and outing", we later formed a seperate club called The "Yo - Yo".

 

If you follow exactly what Howie says you can't go far wrong, money you can afford to lose, good quality companies, (not always Blue Chip for me though), take a profit when it's there, (don't be greedy), don't act on "tips", unless you examine them closely yourself.

 

Good luck

 

Martyn

[Guest peter]

Tracker - 2008-09-29 7:26 PM

 

Hopefully a change of government!

And what difference will that make ?.

[Hymer C 9.]

When I posted this on 29th September hoped by now it would have started to settle down, how wrong was I, and it seems we have one of the lesser rate of falls, I think this money problem is going to take a bit of riding out. Carol.

[howie]

A lot worse Carol and just heard Christmas has been cancelled. Never mind, i,ll save you a place in the soup kitchen queue. ;-)

[GJH]

It would appear that the root of the current problem is that many of the bankers who have been paid (refuse to say earned) fantastic amounts in the last few years have traded using non-existant funds.

 

To knowingly issue a cheque with insufficient funds in an account is obtaining goods and services by fraud and deception, and is a criminal offence.

 

It's about time prosecutions were mounted against these people as a warning to others in future not to tread the same road.

 

Graham

[CliveH]

I think we need to understand what the problem is and in reality just how limited is the problem.

 

The problem is that banks were essentially unregulated in the US and to make bonus there employees had to approve loans. So without even our UK flawed regulatory system US banks made dodgy loans to people who could not afford it then repackaged this debt in such a way that it could be sold on to other banks. When the loans started to default banks started to suffer in the UK. Northern Rock was classic example in that it was lending far more than its assets and so had to borrow from all over and that included US banks whose assets were artificially inflated.

 

Now that debt is seen to be "Toxic" no bank is willing to take the word of another and so the financial system is grinding to a virtual halt.

 

The system will not collapse but it is suffering a severe bought of indigestion brought about by it having to digest what is essentially a dodgy burger sold to it by an equally dodger street vendor.

.

There will been pain, there will be financial flatulence and there will no doubt be a bad smell as well, but with a bit of luck we should end up with a better regulated banking system and regulators who are better up to the job than the ones we have now.

 

My advice as an IFA?

 

First appreciate that money on deposit is not as safe as it once was and that investments in real assets are now in many ways a far better bet than having large sums on deposit. So:-

 

• If you have money on deposit make sure it is with a good provider.

 

• Be very wary of the internet money sites like Fool and Money Expert - They were still recommending IceSave and Kapthung Edge last month when we all knew that Icelandic Banks were in difficulty back in February!!!!

 

• Do not be scared to go into, say, a good managed fund now because this "problem" is with the banks, NOT the underlying industry and infrastructure of our economy or the EU or the US. --- Yes the performance of these industries will falter a bit due to the Banks cock-up, but this simply means that the cost of investing in real assets is now cheaper than it has been for some time.

 

So we have a buying opportunity for those who wish to benefit from the equivalent of a "Blue X Sale".

 

 

 

 

 

 

[howie]

Agree Graham, but don't hold your breath with regards to any forthcoming court cases. This comes under gross mis-management and the only action taken seems to be gross bonus payments.

[maggyd]

Yes its the Fat Cats feathering there nests! they dont give a B.....their All Right Jack! Id like to see them named and shamed but it will never happen. >:-(

[GJH]

CliveH - 2008-10-08 10:15 AM

(snip)

Now that debt is seen to be "Toxic" no bank is willing to take the word of another and so the financial system is grinding to a virtual halt.

(snip)

As I've said previously (can't remember if it was this or another forum) why don't legislators force banks to publicly admit their exposure to bad debt?

 

That way those which should be avoided can be identified and the ones who have liquidity can start cash flowing again with confidence.

 

Graham

[ike]

CliveH gives some advice but what is a "good provider" these days. Halifax Bank of Scotland? RBS? And what are "real assets"? Not stocks and shares that's for sure. To me real assets are bricks and mortar.

ike

[Guest JudgeMental]

ike - 2008-10-08 4:40 PM

CliveH gives some advice but what is a "good provider" these days. Halifax Bank of Scotland? RBS? And what are "real assets"? Not stocks and shares that's for sure. To me real assets are bricks and mortar.

ike

house prices have probably fallen more then shares.Gold or oil? Or as learnt from the Jewish community, something that can be carried...diamonds :-D

[ike]

Judge

Would that I could afford gold or diamonds! Maybe sell my house before it depreciates even further and buy some sparkly bling? But where would I live?

ike

[bob b]

Regarding the dodgy financial instruments, I read that Warren Buffet, the investment whizz, was quoted as saying 'Beware of Geek's bearing formulas'.

The spanish bank, Santander apparently hasn't any of this toxic debt, as their policy is not to buy financial instruments they don't understand.

Of course, us laymen haven't a clue who's exposed to what, when we're looking to invest our nest eggs ! 

[Guest JudgeMental]

 

I have my own personal toxic dept in the form of my wife *-)

[bob b]

Careful Judge....careless talk costs lives !