UK faces biggest fall in living standards on record

[2009]

50 minutes ago, nigelforbes said:

The question is easier to answer if you go back to include the past 5 years! I've been invested in the S&P for that many years but the past 12 months have been wretched.

Yeah, it's down -17% this year, but still up 50% over 5 years. Not too shabby.

[Mac Mickmanus]

3 hours ago, 2009 said:

You'd get that on a rental property (property valuation increase and also rental income)

 

Property prices are on their way down . 

The cost of living crises and high inflation rates have caused a lot of people sell and not many are buying , which is causing a property price decrease 

 

https://www.reuters.com/world/uk/uk-house-price-rally-end-next-year-no-big-crash-expected-2022-11-25/

 

[Chomper Higgot]

12 minutes ago, Mac Mickmanus said:

Property prices are on their way down . 

The cost of living crises and high inflation rates have caused a lot of people sell and not many are buying , which is causing a property price decrease 

 

https://www.reuters.com/world/uk/uk-house-price-rally-end-next-year-no-big-crash-expected-2022-11-25/

 

Which in turn is adding to all the other issues driving the wider economy into recession.

[2009]

48 minutes ago, Mac Mickmanus said:

Property prices are on their way down . 

The cost of living crises and high inflation rates have caused a lot of people sell and not many are buying , which is causing a property price decrease 

 

https://www.reuters.com/world/uk/uk-house-price-rally-end-next-year-no-big-crash-expected-2022-11-25/

 

Still though, how can just holding cash be better?

 

I get that everyone needs an emergency fund, but over and above that, it's a waste.

[Mac Mickmanus]

3 minutes ago, 2009 said:

Still though, how can just holding cash be better?

 

I get that everyone needs an emergency fund, but over and above that, it's a waste.

So where would be the better place to put money TODAY ?

(I don't mean , where should the money have been put 5 years ago .) 

   Where should money be invested today , where you are guaranteed higher returns than banks interest rates (5 %) 

[2009]

1 hour ago, Mac Mickmanus said:

So where would be the better place to put money TODAY ?

(I don't mean , where should the money have been put 5 years ago .) 

   Where should money be invested today , where you are guaranteed higher returns than banks interest rates (5 %) 

The SP500 and rental properties will continue to beat bank interest rates, lol, just like they always have.

[bradiston]

2 hours ago, Mac Mickmanus said:

So where would be the better place to put money TODAY ?

(I don't mean , where should the money have been put 5 years ago .) 

   Where should money be invested today , where you are guaranteed higher returns than banks interest rates (5 %) 

Some overseas banks pay more. But the risk is there. No bank in the UK pays 5% AFAIK. The one I'm with at the moment pays .35%. Yes, point 35%. They're closing my account next year. Only good for online banking.

[Mac Mickmanus]

2 hours ago, 2009 said:

The SP500 and rental properties will continue to beat bank interest rates, lol, just like they always have.

The S&P has been falling for one year and has lost about 10 % of its value , so  your investment this year would have been down by 10 % and you would be up by 1.5 % had you stuck the money in a bank and with rental properties , you need to be  the landlord or pay an agency 10 % and being a landlord is a job itself 

[2009]

58 minutes ago, Mac Mickmanus said:

The S&P has been falling for one year and has lost about 10 % of its value , so  your investment this year would have been down by 10 % and you would be up by 1.5 % had you stuck the money in a bank and with rental properties , you need to be  the landlord or pay an agency 10 % and being a landlord is a job itself 

Yeah, but you know I might live another 50 years. Lol.

 

You should never out money in stocks that you'll need within the next 5 years.

 

It's silly to try time the markets jumping in and out is a losers game 

 

 

[nigelforbes]

3 minutes ago, 2009 said:

Yeah, but you know I might live another 50 years. Lol.

 

You should never out money in stocks that you'll need within the next 5 years.

 

It's silly to try time the markets jumping in and out is a losers game 

 

 

Yes and no, I suppose it depends on the definition of "time the markets". I moved from 100% global equities to around 50% Wealth preservation funds, 10% equities and 40% cash. Not long afterwards the markets fell and my investor peers/friends all took hits up to -40%, I suffered -6%. I came out of equities because the 10year became inverted  and I thought I could see the inflation writing on the wall....I was lucky, I was right. Now, I'm slowly getting back into equities, very very slowly. A friend says I'm timing the market, I say I'm not. I say I'm making rational adjustments based on economic forecasts and events. Define it how you will, if that is timing the markets it's definitely not a looser game.

[2009]

12 hours ago, nigelforbes said:

Yes and no, I suppose it depends on the definition of "time the markets". I moved from 100% global equities to around 50% Wealth preservation funds, 10% equities and 40% cash. Not long afterwards the markets fell and my investor peers/friends all took hits up to -40%, I suffered -6%. I came out of equities because the 10year became inverted  and I thought I could see the inflation writing on the wall....I was lucky, I was right. Now, I'm slowly getting back into equities, very very slowly. A friend says I'm timing the market, I say I'm not. I say I'm making rational adjustments based on economic forecasts and events. Define it how you will, if that is timing the markets it's definitely not a looser game.

It may work 2 times out of 10, lol.

 

Generally, 'time in the market' beats timing the market.

[nigelforbes]

5 minutes ago, 2009 said:

It may work 2 times out of 10, lol.

 

Generally, 'time in the market' beats timing the market.

As a broad principle that's true. I was having a discussion with an experienced investor about this subject. The problem we ran into was that it wasn't easy to define what "timing the market" really means. Day traders time the market all day long, that's perfectly clear. But the funds investor who changes his strategy on funds, once every three years, is that timing the market? I don't think so. The investor who gets our of equities due to economic collapse and stays out for two or three years, is that timing the market? I don't think so. The 65 year old who switches from 100% equities to 60% equities, is that timing the market? I don't think so.