06-05-2008, 04:56 PM
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Senior Member
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Join Date: Jan 2008
Posts: 83
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Quote:
Originally Posted by rcroome
Anything that's hot right now is probably hot because of speculative money. The smart money has moved to cash, gold and oil. Most people are waiting for the mature markets to bottom out, and depending where you are in the world, it could be up to 2 years away.
Doesn't mean you shouldn't stop looking. The early bird catches the worm etc...
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rcroome...how true, at least for some. However, if Oil continues to rise, GDP for most countries will be considerably affected. In other words, NIL growth or worse. Specially countries such as the UK.
Oil & Gold do seem the best options at present. Since cash will clearly suffer along with the downturn in any and all economies affected which is likely to be most if the doom & gloom forecasts prove correct.
Not a happy period but no doubt a considerable number of us on this site has experienced several past recessions.
Fortunately part of my work is with syndicates who contribute circa 30-40,000 Euros each to create the basic fund, which is then leveraged through financial institutions to finance and create commercial & residential properties. The result is superb ROI + property purchased at cost for themselves to either resell or retain. Most are not the 'flipping sorts' and look for longer exit strategy and retaining sizeable portfolios.
Example; I was reading today on Iain Matland's newsletter the stats for the UK buy-2-let market which supports this theory greatly. Apparently, Jonathan Moore of buy-to-let brokers Mortgages for Business reports...“13 per cent of landlords own 74 per cent of the buy-to-let stock. And even more striking is the fact that 53 per cent of landlords own just 3 per cent of the stock.”
Despite the down and falling market, the third place to 'park cash' during the next say 2-3 years, is still property. Of course, it has to be the sort that provides solid rental incomes too, else you might just as well watch your cash decline in a bank deposit.
rcroome...consider the longer term with property and there's little question it'll stand well alongside your Oil shares and Gold Bars. Do you have any going spare?!!!
Best of good fortune to you...
Olly
Last edited by Olly; 06-05-2008 at 05:01 PM.
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