How to take advantage of recession??

[Daimo]

Is there a way? Surley with all these stock and share prices dropping, soon would be a good time to get into it, buy some low cost shares and hope they go up as we pull out of it?

Also, im guessing purchasing some $$ for a holiday next year, buying them sooner rather than later would be better (if we're going into the recession, doesn't that mean our £ will be worth less against the $$?).

Anyone clued up in the markets who could offer some advice on how to make money during the upcoming months?

Its for a good cause, the Damien Benelli Tornado fund :lol:

[Dave The Rave]

If you guess right you buy shares, options etc at their lowest prices. When will that be? No one knows. So there is a great deal of risk.

This is global issue so no gain on £ vs $ ratio. Highly likely $ will get weaker as America is power house of the world.

[G]

Not even noticed much of a difference to be honest......Dont listen to the News or read papers and life all of a sudden gets alot less stressfull.

[gettin2dizzy]

Just wait a few weeks until the price of luxury holidays hits rock bottom :thumbsup:

[Biker Biggles]

Buy gold and bury it somewhere safe?
Not so daft actually as that is exactly what the big money has been going into over the last year.

[yorkie_chris]

That's been going on for a few years, gold is fairly guaranteed.

[Biker Biker]

After the first big stockmarket bubble burst in 1930's share prices did not get back to the same level until 1957

[dizzyblonde]

I personally would take out all your money from the bank and hide it under the mattress.
My gran has an absolute shed load of shares in the HX, had em for years, but since my grandad died I doubt she'll even know how much shes losing on them at the moment, and its not exactly a subject one would like to approach. My other half says that its probably more prudent of her to not bother with them, as they will no doubt rise again after the takeover anyway, so she'd no doubt be none the wiser!
A few years ago, he invested in shares to the value of £35k, when 9/11 happened he lost the lot! Stocks and shares are a gamble...he was advised they would be a very wise investment, but nobody expected that tragic event to happen

[Pedrosa]

I dont think anyone could really hope to buy shares at much better than many are right now. If one can avoid the bargain basement mentality it should work well. Meaning that they are largely at a false position anyway and profit is there to be made. Waiting for them to completely bottom out might see you miss out as almost immediately they could rebound again before you get on board.

Have a look at the previous performance and value of some of the blue chip shares and you will no doubt see plenty of return to be had in betwen where they are today and even say 20% less than their best ever price. Not a scientific approach but all helps you gain a more realistic picture and to manage your aspirations.

Dont forget though....only invest in shares, what you could afford to lose. It is a gamble at the end of the day.

[Biker Biggles]

Im an HBOS shareholder.Got them for free when Halifax went public so Im not that bothered they have become almost worthless.A bit like house value,its not real money is it?

[Drew Carey]

We are seeing a large shift at the moment with all our investors and fund managers. Cash is being taken out in droves and being re-invested into more secure products. The large area that is expanding is Unit Trusts. It spreads the risk and is safer for large quantities of asset.

As for investing lots of cash into falling stocks, choose wisely. A price that is falling rapidly, is appealing, BUT, if the stock falls too much, the company will then be a prime target for a takeover. At the moment the majority of the declines are due to people short selling and market confidence. It doesn't detract from the fact there are still some very large cash rich investment companies. If prices tumble a great deal, we may well see a huge amount of takeovers occuring as people look for a "bargain". If that happens, the amount you recieve on the offer could be massivley under what you pay.

The best bet is companies that irrelavent of the share price, have very sound infrastructure and large cash pools to whether the storm. They will loose value as the markets go down, but will be able to retain the business etc. And on the other side, keep clear of firms with large pools of debt.....so building firms, banks with a large mortgage business etc.

Hope that kind of makes sense, but could whittle on for hours bout this stuff and there are so many views and theories.

PS, as others have said, keep away from foreign currency, this is a global downturn, so can't see any winners on this one.

[Drew Carey]

Im an HBOS shareholder.Got them for free when Halifax went public so Im not that bothered they have become almost worthless.A bit like house value,its not real money is it?

No, but if you keep hold of the new Lloyds shares you will recieve, you may find they return some really good value in the future. Having been able to create the UK's largest banking firm (at a discount) they now have a massive mortgage book, which, should the markets recover will be worth billions, but they will also have a huge retail banking side to offset losses and keep going.

In my view the new company is going to extremly succesful. This is one of the reasons why the competitions laws were inplace, to prevent one comany controlling a market share and making huge profits at the cost of customers. This has now been made legal, but means massive gains for shareholders in the future.

[Pedrosa]

If you guess right you buy shares, options etc at their lowest prices. When will that be? No one knows. So there is a great deal of risk.

This is global issue so no gain on £ vs $ ratio. Highly likely $ will get weaker as America is power house of the world.

Central Banks have today pumped in a whole load of cash. Looks like yesterday was "bottomed out day" shares have commenced a recovery.

Did you snap any up??

[northwind]

You can make money in a generally falling market- if you have shares, sell 'em as it falls, then buy 'em back when it stops falling, then sell them again when it goes back up. The markets are mental just now, loads of swings so lots of opportunities for short-term profit taking but also very high risk- nobody knows what's going to happen, you only have to look at the HBOS ones to see that. Gone are the days when a share value had anything to do with the value and security of the company.

It's always just buy cheap, sell dear, at the end of the day.

Don't take your money out of the bank, if it's cash then I'm pretty sure you're protected in the event of a collapse up to £35000. That was the worst madness of Northern Rock, the average withdrawal in the bank run that put them out of business was only £40000, meaning that most of the people who broke the bank faced no risk at all.

[Sudoxe]

Central Banks have today pumped in a whole load of cash. Looks like yesterday was "bottomed out day" shares have commenced a recovery.

Did you snap any up??


Nope, that’s the inter-bank money market rather than the stock market.

(Un)fortunately market sentiment generally overrules technical analysis on this and there is still a bad feeling in the air regarding Morgan Stanley along with WaMu looking for a deal with another bank.

Market sentiment in London is up due to the HBOS take over (along with many other reasons)

I would suggest that the DJIA will close down today.

What do I know though, im just a geek!

Dan

[gettin2dizzy]

Don't take your money out of the bank, if it's cash then I'm pretty sure you're protected in the event of a collapse up to £325000. That was the worst madness of Northern Rock, the average withdrawal in the bank run that put them out of business was only £40000, meaning that most of the people who broke the bank faced no risk at all.
YOu're only protected up to £35k. But if you've that much in the bank - then you're not exactly struggling!

[Drew Carey]

+1..... Will be interesting to see what the Dow Jones does today. But I dont think we have seen anywhere near the end of this. Think a number of large institutions will either go or will have to tie in with retail banks to use the capital they have. Only time will tell.

[gettin2dizzy]

Why is so much taxpayers money being poured in to this?! :( We're already overtaxed.

[Flamin_Squirrel]

Why is so much taxpayers money being poured in to this?! :( We're already overtaxed.

That sounds like dangerous Tory propaganda to me. That money is needed to pay for the police that are on their way round to get you for not believing in the great Labour regime...

[Dave The Rave]

Central Banks have today pumped in a whole load of cash. Looks like yesterday was "bottomed out day" shares have commenced a recovery.

Did you snap any up??

I don't think we are anywhere near the rock bottom yet. No snapping for me at the moment. I will stay put and wait. I will have no cash left when the right moment arrives. I am dreading the gas bills this year. It was £400 for summer months so god knows what the winter will be like.

[Pedrosa]

Nope, that’s the inter-bank money market rather than the stock market.

(Un)fortunately market sentiment generally overrules technical analysis on this and there is still a bad feeling in the air regarding Morgan Stanley along with WaMu looking for a deal with another bank.

Market sentiment in London is up due to the HBOS take over (along with many other reasons)

I would suggest that the DJIA will close down today.

What do I know though, im just a geek!

Dan

I believe that you did not have an understanding of the encouragement the central bank action of today would have on the markets:

What cant speak cant lie...markets recovering:


MARKET DATA - 15:20 UK
FTSE 100
4978.00up
65.60 1.34%
Dax
5933.02up
72.04 1.23%
Cac 40
4066.85up
66.74 1.67%
Dow Jones
10811.58up
201.92 1.90%
Nasdaq
2142.81up
43.96 2.09%

[gettin2dizzy]

That sounds like dangerous Tory propaganda to me. That money is needed to pay for the police that are on their way round to get you for not believing in the great Labour regime...
:lol:

David 'Blair' Cameron :thumbsup:

I can't believe that out of the WHOLE country, we're going to have to choose between two such muppets.

Mind you, it makes me understand how the Yanks must feel right now :lol:

[Sudoxe]

I believe that you did not have an understanding of the encouragement the central bank action of today would have on the markets:

What cant speak cant lie...markets recovering:


MARKET DATA - 15:20 UK
FTSE 100
4978.00up
65.60 1.34%
Dax
5933.02up
72.04 1.23%
Cac 40
4066.85up
66.74 1.67%
Dow Jones
10811.58up
201.92 1.90%
Nasdaq
2142.81up
43.96 2.09%

I believe that you did not have an understanding of the lack of encouragement the central bank action of today would have on the markets:

What cant speak cant lie...markets receding:


Exchange Dow Jones indexes Price 10,596.88 Today's Change -12.78 (-0.12) Open
10,609.01 Prev Close 10,609.66


We will see how this plays out at close today...

[Biker Biggles]

This sort of intervention is the time honoured way the major economies are stimulated by their central banks(governments)and is essentially the Keynsian model developed after the 1929 Wall St crash to get things going again.It worked reasonably well for over half a century,but in todays global economy even concerted action by five or six nations is not enough to "buck" the market.If you add up the money available to the worlds major investors such as merchant banks,hedge funds sovreign wealth funds and private equity funds you can easily locate five to ten trillion dollars.Today the bank of england freed up fourty billion dollars and a fair bit more from the Americans and others.The markets rise a bit,but its chicken feed compared to all those trillions.
Central governments simply dont have the backup and clout to have any long term effect on whats going on out there.A new world order has arrived perhaps?

[Pedrosa]

Sit tight as it is likely to be something of a roller coaster type graph for a short time yet.

[Biker Biggles]

Must remember to apply for that job working for the Sultan of Dubai.He's got all the money it seems.

[Welsh_Wizard]

the gypo's round my area think lead is a good commodity at the moment....

[Biker Biggles]

They are right.Far better value than the houses they are nicking off.

[Dave20046]

Just wait a few weeks until the price of luxury holidays hits rock bottom :thumbsup:
And then the airlines go bust? :confused::rolleyes:

[Biker Biggles]

Last weeks news.Airlines already bust.Will have to take eurotunnel.Oh that burnt down.Looks like Blackpool then.

[northwind]

YOu're only protected up to £35k. But if you've that much in the bank - then you're not exactly struggling!

Mega typo on my part there :D

[northwind]

Why is so much taxpayers money being poured in to this?! :( We're already overtaxed.

Because when the stock markets and money markets fall, so do companies, which reduces tax revenue, and puts people out of work, which also reduces tax revenue while increasing social spending. But you know that of course.

[ooger]

No, but ...

http://uk.gizmodo.com/vicky%20pollard.jpg

Milk and sugar on your credit crunch, Drew?

Didn't want none anyway, I bet.

[tigersaw]

Last weeks news.Airlines already bust.Will have to take eurotunnel.Oh that burnt down.Looks like Blackpool then.

Best go visit the pier before thats gone too.

[gettin2dizzy]

Because when the stock markets and money markets fall, so do companies, which reduces tax revenue, and puts people out of work, which also reduces tax revenue while increasing social spending. But you know that of course.
We should just give them pointless public sector jobs to keep them employed... oh, has that already been done? ;)

[Flamin_Squirrel]

We should just give them pointless public sector jobs to keep them employed... oh, has that already been done? ;)

Makes you wonder doesn't it. The government seems to expect the private sector to support the economic dead wood to infinite degree.

[Viney]

If you guess right you buy shares, options etc at their lowest prices. When will that be? No one knows. So there is a great deal of risk.

This is global issue so no gain on £ vs $ ratio. Highly likely $ will get weaker as America is power house of the world.Buy yesterday, sell today.