Really not worried about inflation any time soon. Cash is beautiful at the moment.Originally Posted by Montello
Really not worried about inflation any time soon. Cash is beautiful at the moment.
Raffe, You come across very experienced in the economic/investment world so adding your thoughts and experience in threads like this is helpful.
I have some material assets that will no doubt take a hit like a classic car and vintage watches but I really like them for what they are and not bothered about a price correction, to enjoy a watch/car and for it to make money is double bubble.
I'm just so so relieved that any business interests I had and property is now sold and cash is in the bank, all this happened within the last few months with no planning for a future crash, just the way it fell! I even offered a large sum on a house last month that needed refurbishment but got out bid, looking back I was a bit gutted but now I would turn that house down at the price I offered..
Agreed; I'm not sure where else I would go to have conversations like these; certainly I wouldn't be having these types of candid discussions with friend and relatives.
Some upwards pressure today in the markets off the back of the stimulus offered but I think this will prove to be short lived.
I am a subscriber to Money Week magazine and one of the things the writers have often bemoaned in their pages is the continuance of zombie companies with poor business models being kept alive with "cheap money" ... will the companies just be able to pile on more cheap debt to stay alive or can we expect to see lots of casualties?
Yes, doesn't make sense to look at everything only through the materialistic eye, I have kept a dozen or so watches which are dear to my heart (and a modern classic car as well). Enjoy your freedom!
For those questioning a lot of what Raffe has been saying about cash, note that your money needs to remain somewhere - so either in cash, stocks and shares, property or other assets (e.g. arts, watches, whatever floats your boat).
Cash is simply the best in relatively crappy situation. Like Raffe, I'm in the boat that inflation is irrelevant (heck it's been relatively stagnant for a while). Even if you're 'losing' 1-3% due to 'inflation' (which I do not believe), you're still better off having cash than losing 30% in the stock market. Especially now if you have no confidence in the global economy and believe things could get worse.
It also means you are likely to have a lot less stress!
don't follow the herd
I'm now 73, I worked hard and was lucky that I could chose to retire when I was 50, with two kids still to put through school and Uni...........I have had to manage my assets, money, stocks and property etc, over those years and I have never trusted what the "experts" have advised - listen to them, maybe, but less and less as I have got older, make your own decisions and take responsibility for those.
£ up again against the Euro this morning 1.75%
Last edited by BillN; 20th March 2020 at 11:29.
Genuine question - what exactly is the current herd mentality? I have no idea - people seem to be spraying everywhere.
I do agree with you about take responsibility for your own actions. 100%. I have kept all my current shares - they were bought for the long term and I'm not going to be selling them. I'm just not comfortable to do much else at the moment!
as I said spread your risk - 50% of my largest pension fund has been in cash for the last 4 years - I was told that was inadvisable by IFA friends - I did not do it, because I'm "smart" I did not do it because I thought that there would be a catastrophe as we are seeing now............I just felt that it was "right" for me at the time ....... as I indicated I am 73
(maybe psychologically it was because I lost a packet when Equitable went down!!)
"herd mentality" - it was and has been - pile into shares - buy BTL's, etc., etc. - "the system" plays a game with us all, .........
"herd mentality" now - judging by what has happened, it's "sell" sell sell
the pendulum always swings too far
Last edited by BillN; 20th March 2020 at 11:54.
Modern classic like mine, interesting! so what is it?? I have a 1987 E30 M3
IMHO
Basically in this world the best (financially) you can achieve is to spread your risk.
Things like classic cars are bought to enjoy and the dividend is in their enjoyment ....... I feel that the same should be said of your home, (I keep telling this to my son in law who think that they are assets to make money from)
Indeed, and given your history Raffe, I’d be interested to hear your view on what counts as a safe haven, and what’s going on with assets like gold, platinum, palladium, rhodium etc. For instance platinum is tanking and well below gold, and for good reasons (not much demand in the short term). But what’s the long view? Clearly people are more comfortable with cash than falling shares and assets, but I don’t feel that confident with cash either given how much of the stuff is being printed. Though Ray Dalio sees the risk as deflation rather than inflation. I also wonder how safe the banks are, given that propping them up has been declared not to be the first priority this time (rightly, but then what happens when everyone defaults on loans?) Any thoughts on all of this you’d be happy to share?
By the way I for one don’t pretend to understand any of this stuff, it’s a long way from my field. These may not even be the right questions. I’d barely got my head around ISAs before all this kicked off, but you don’t need a crystal ball to see mayhem ahead.
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