The Economy - How Much Worse ?

[Daltons Chin Dimple]

How much worse can this get ? The entire fabric of global financial economics is stretched about as far as it can go. Noting is moving, stocks are in frefall, the banks themselves have no money. Where do we go next ????

[omicron]

I'm planning on dressing in black leather, packing my dog into a black Ford Interceptor and heading round the outback looking for gas. :lol:

[neglet]

If you'll pardon the metaphor, I believe the financial system has a severe case of credit constipation. The credit just can't get out, so we're going to be stuck in shit for a while before things loosen up and get back to regular movements.

[Daltons Chin Dimple]

If you are willing to play the long (by that I mean 2-3 years) game, is now not a great time to buy some bank shares ? As long as you don't pick one that collapses or get's nationalised, that is.

A week ago, RBS was worth double what it is today and will climb back there eventually. So if we have some spare cash, isn't now a good time to fill out boots !?!??!??

[neglet]

Oh, sure. My husband and I won't be retiring for nearly 20 years. We keep contributing to our retirement accounts, because eventually they will go back up. Buy low, sell high!

Imagine if you had pulled out your money from stocks during the 1987 crash. If you'd kept your money in and weathered the storm, 20 years later you would have had quite a profit. As you get closer to retirement, you increase the proportion of your money in safer investments, but to pull everything out during a panic is stupid, unless you've got your money in one unstable stock. But if you're in a managed mutual fund, it would be stupid to panic and sell now.

[tstone]

Exactly, I've got over twenty years until I retire. I'm keeping up with my contributions. In fact, early next year, I'm buying into two more funds.

Come retirement, I'll continue working part time in radio, just because I want to.

Buy low, sell high.