Monday |
Tuesday |
Wednesday |
Thursday |
Friday |
That was the week that was
Recent History |
Archives
Hello Crazies,
There's a lot of uncertainty at the moment. Read the papers and you see that the economic world is about to fall in.
This has been going on for some months. A lot of journalists think that shares are going to fall heavily, due to a tottering housing market.
But a housing market in trouble has often meant that share prices are not in trouble. As money comes out of property - mainly the buy-to-let market - then more dosh goes into shares.
This shift of resources mainly affects smaller shares. I suppose the story is that Mr Brown sells his house which he's been letting and puts the dough into penny shares instead.
Of course, this is a very simple tale, and probably it won't affect share prices too much. But when money is used to buy houses, it ain't available to buy shares in computer companies.
So any road up, I expect house prices to fall at least 15 % this year - and I wouldn't be suprised if share prices rise by the same amount. It's only a guess chums. But I really see no reason to fear falling house prices.
Yes, it will mean that banks will not loan out as much money, as mortgage seekers dry up or mortgage requests are more modest, to buy cheaper homes, but is that a bad thing for banks? Didn't Northern Rock (NRK) get in that mess because it loaned out too much mazuma and then borrowed itself to fund the deals.
Anyway this is all getting a bit complicated. So I'm off to the Punter's Return!
To find out more about Malcolm CLICK HERE
UKSA is the leading independent organisation for private shareholders in the United Kingdom. It campaigns to protect your rights as a shareholder and runs educational activities for members.
For more information about UKSA CLICK HERE
