I had to add this in alongside the property crash discussion as its the talk of the town!! so has your pension talking a bashing are you running for cover or predicting the Great Depression part two after the events of Blue Monday, The US stock exchange set to open shortly should be interesting!!
Asian Markets Plummeted Overnight Not looking good
Not looking good alright, but I guess thats what happens when you build societies on ridiculous overspending and credit, still we've had a good run in the last ten years of frithering our money away on zany gadgets and booze, we should all be proud
This is why a pension is completly worthless one little stock market blip can wipe it out. Only sure fire way to have money when you retire is to buy property or land.
Rubbish. A pension is a long-term investment; look at the long-term returns on equities over any 20-year period and it is positive. A you approach retirement age the fund is moved into cash to insulate it against short-term volatility.Originally Posted by anto1208
(The biggest problem with pension funds is that you have to buy an annuity with it on the day you retire, and so are exposed to the interest rates on the date of your retirement. But that is changing and by the time I retire I will be able to draw down my pension fund over time.)
I'd suggest keeping it under the bed.
Good call. Was Ollie Byrne running world Capitalism in his spare time?
TO TELL THE TRUTH IS REVOLUTIONARY
The ONLY foot.ie user with a type of logic named after them!
All of this has happened before. All of it will happen again.
Better yet, keep it under my bed.
Pensions will be taking a pounding so no chance I can retire next year
If the markets go down they will still come back in the long term so really nothing to worry about for any one under 50 if not older.
I like this quote:
It's a recession when your neighbor loses his job; it's a depression when you lose yours.” ~ Harry S. Truman
Technically a recession is defined as a decline in a country's gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year but that is too simplistic. One bank has already said the US in a recession but others slow to follow. I think the US will be first to hit a recession but Ireland may not hit it but will be big downturn this year. Unemployment very low in Ireland so I suppose we working off good base.
If people stop spending money the economy grinds to a halt as tax revenue sinks. Contrary to general opinion I read recently that Irish people actually big savers as a lot of SSIA money went on paying off debts. Compared to the US we fairly frugal as a lot of our debt on property which obviously is a lot better than credit cards & personal loans.
Great day to buy shares though ! BOI 9 euro
The Fed has cut interest rates by 75 points or three-quarters of one percent. That's one hell of a cut, and it doesn't come from a scheduled meeting either.
http://canadianpress.google.com/arti...lIYmguTWg4CHSg
adam
But that includes people who have re mortgaged houses to pay for Holidays and cars and other stuff. Theres a lot of that about and the banks encouraged it.
TO TELL THE TRUTH IS REVOLUTIONARY
The ONLY foot.ie user with a type of logic named after them!
All of this has happened before. All of it will happen again.
Unfortunately for Ireland its a bit of a perfect storm, as the wheels falling off our property bubble (to use a Bertie-style metaphor), which is a welcome and overdue event for our long-term health, this has coincided neatly with what appears could be a global recession driven by rising inflation and the credit crunch.
I wouldn't touch any equities for at least the next month or two as I don't think we're near the bottom yet but there will be a lot of value out there if you're in for the long-term.
As for what or what not to invest in, there's no real magic theory. As a few posters have said you need to assess your investment horizon and risk appetite and re-balance according. Diversify as much as you can, and reduce your exposure to volatile assets (eg equities) and increase cash or cash equivalents the closer you get to retirement.
The Fed actions are firmly in the category of shutting the stable door after the horse has bolted. Greenspan clearly saw the writing on the wall when he retired!!
Using "low employment" as a foundation for our future financial security is about as logical - and will be as accurate - as predicting a "soft landing" in the housing market.
Holy ****! When's the last time they did that?
You can't spell failure without FAI
1982.
City definetly have the best bands playing at half-time.
O'Bama - "Eerah yeah, I'd say we can alright!"
G.O'Mahoney Trapattoni'll sort ém out!!
It may have worked though, the Dow hasn't been too bad since it opened.
India was in trouble this morning, they suspended trading when it hit -10%.
adam
My point was squarely based on the maxim that if you're going to suffer pain, get it over with and then you can start the recovery earlierUsing "low employment" as a foundation for our future financial security is about as logical - and will be as accurate - as predicting a "soft landing" in the housing market.
The next few years are not going to be a good experience for many people in Ireland.
I was replying to pete ORA. You've already conceded that the property bubble has burst, and of course the property bubble is responsible for a very large proportion of employment in Ireland. Century Kingspan laid off 24 last week, and that's only the start of it in the building manufacturing sector. Employment on site has been in trouble for months now, what with half of them being closed or on a go-slow and all...
It's over, we just have to cross our fingers now and hope that the dimwits in the US - and closer to home of course - don't drag us all the way down with them.
adam
Last edited by dahamsta; 22/01/2008 at 2:54 PM.
Apologies Adam.
ii've recently heard a few alarming stories about how far the property crash is spreading. One about a large kitchen maker whose sales are down 50% as they specialised in fitting new turnkey homes.
Fasten your seatbelts everyone, there may be some turbulence in the descent!
No need to apologise. TBH I don't monitor local/national news as much as I should* so I'm working more off intuition than anything else; but to be perfectly frank, I'd view anything but some level of doom and gloom as counter-intuitive and counter-productive. There's a bizarre - and dangerous, in my view - lack of realism out there on these subjects, and has been since the downturn started a year or more ago. Deny, deny, deny. What's the point like?
US markets still seem to be holding up.
adam
* Thankfully I have someone to do that for me these days.
Last edited by dahamsta; 22/01/2008 at 3:38 PM.
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