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TOPIC: Stock Market Jitters
#198542
Barney

Stock Market Jitters 2 Weeks, 6 Days ago  
Only the very brave will be active this week in the share market - with all types of negative data emanating from every quarter.

Central banks, governments, international conglomerates, oil companies - are all phased by the Brexit/Virus potential consequences.

And alarmed by the Treasury's spending - which is expected to be in excess of £300 billion - and will undoubtedly lead to severe austerity programs.


However, although the data is awful everywhere, times like this bring out the smart investor.

Who will identify opportunities - to make serious money, in the midst of volatility and crises.

Many businesses too, will be keen to get an investment stimulus - at what is likely to be their most difficult time.


 
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#198553
Barney

Re:Stock Market Jitters 2 Weeks, 5 Days ago  
GDP is expected to shrink by 14% in 2020 - beaten only in 1706, just after the Bank of England was founded.

The prediction is for a Q2 contraction of 25% - unheard of in our history, and most of the world's.


Our options are limited to borrowing, taxation and spending cuts - and likely to be a combination of all three.

Brexit has changed too - as most of Europe is suffering also. And it may not be the opportune time to complete our withdrawal.



 
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#198555
Jo

Re:Stock Market Jitters 2 Weeks, 5 Days ago  
There will no doubt be people who can take advantage of this situation. What I'm concerned about most is the economic crisis developing into a financial one, e.g. if lots of companies/individuals default on their loans, and banks collapsing. After a run-in with a bogus financial adviser several years ago, I have kept most of my savings in bank accounts, most with one bank, and would get only a small fraction of it back if the bank collapsed and there was a bail-in and confiscation of depositors' savings, something that has apparently been an EU-wide rule (and rule in the UK and other countries) since 2014. Under the rule, savings above 85,000 pounds/100,000 euros per financial institution are forfeit. It was already done in Cyprus in 2013, when depositors experienced huge losses, billions, when banks were bailed in. I had always thought the biggest problem with keeping money in the bank was just not getting a good return and the attrition of inflation rather than the existence of the bank possibly being at risk and threatening one's savings.
 
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#198587
Barney

Re:Stock Market Jitters 2 Weeks, 4 Days ago  
Bank failures have been common recently.

So it's important to be cognizant of the £85,000 guarantee limit.

Although banks are hardly the place for cash at the moment - with shares currently at a very low ebb.


Opportunities are all around us.

But the trick is to identify which sector will recover the fastest!

Will it be leisure, retail or something like oil...




 
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#198597
Jo

Re:Stock Market Jitters 2 Weeks, 3 Days ago  
Barney wrote:
Bank failures have been common recently.
Really? Which ones? I haven't been aware of any in the UK since the 2008/2009 financial crisis, let alone of them being common since then.
 
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#198600
Barney

Re:Stock Market Jitters 2 Weeks, 3 Days ago  
Recently - meaning the last 15 years or so.


And with the inevitable depression coming our way, there will be many more failures of financial institutions.

Particularly if the property market - property often being a bank's principal security for loans - doesn't quickly regenerate.



 
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