The 1990's Stock Market Boom & Now

[Doomberg]

Personally i missed any of this as i'm only in my 20's now, however i do know of a few people who's lives were completely made from it, some that went from very little to millionaires and made that much that they were set up for life... There was one story i heard, a friends dad who was lucky and then very unlucky, he had no idea what he was doing but turned 50k in to £2m and then put all his eggs in one basket and unfortunately the bubble he was in popped. Anyway the point to this post, the world is in a tough spot right now and the markets are reflecting this of corse, but in time the recession will get easier and eventually end like it has every other time. So realistically as investors we are all in a fortunate positions right now, because when we get through this there will be many brilliant opportunities. Also i'm aware that the 90's boom was not so much down to a recession reversal and was more down to it being the decade Internet and e-commerce technologies among other things emerged. But i still believe we are in a fortunate position.

Whats your opinions on this?

 

[dmt257]

The Western nations peaked a few years ago in their standard of living.

It is all downhill from here. There will never be a true recovery from this recession.

 

[nunrgguy]

The Western nations peaked a few years ago in their standard of living.

It is all downhill from here. There will never be a true recovery from this recession.

My opinion is trade what you see, not what you think.

 

[shadowninja]

The dotcom was useful for a lot of people. The snag is, what is there now? What is the next bubble to ride up?

 

[DashRiprock]

The dotcom was useful for a lot of people. The snag is, what is there now? What is the next bubble to ride up?

China

 

[nunrgguy]

China

Yeah, I'm waiting for that one with a long term investment. The waiting is painful

 

[Doomberg]

DashRipRock and nunrgry... whats going on in China thats worth investing in?

And dmt256.. oh im sure we'll recover in time

 

[tomorton]

I think if you're a long-only buyer-and-holder and you look at the main indices - S&P, Dow, FTSE - there is no positive expectation of much upside. We may indeed rise to the highs of the double-top in mid 2007, the Nasdaq certainly seems to suggest we will, (but it's always the most optimistic index) but unless we convincingly breach 2007's highs, then it looks like the macro double-top of 2000 / 2007 will take effect and it's downhill all the way for years.

Then again, isn't buy-and-hold like buying a car without brakes? - It will be a beautiful ride as long as we don't crash.

 

[DashRiprock]

china credit
china real estate
china commodities

all bubbles

DYOR lazy b@stard

 

[cr6196]

http://en.wikipedia.org/wiki/China_Stock_Frauds

about 20 have blown up in the past month or so. corporate governance is terrible and there is basically no control on credit in china. the banks are **** too and foreign investors will get badly shafted by the govt soon. its a bubble tho cos pros like Carlye and Hank Greenberg just got suckered out of $bns by companies with basically no business. there is also no way to get any of it back in the courts. imo, china is uninvestable but makes for a good bubble. some funds who shorted these companies are up triple digits for Q1.

 

[iota]

The Western nations peaked a few years ago in their standard of living.

It is all downhill from here. There will never be a true recovery from this recession.

On the upside, it's forcing people to actually look at the world they live in. Some are even getting mad about it.

 

[Doomberg]

Wow just been reading about the Chinese Stock Fraud, dodgy as hell! Up to 30% of the Chinese 500 :O

 

[Liquid validity]

If you are looking for a more conservative, safer FSA covered china play, try tesco or similar company building a market in china, good enough for Buffett - he owns 3% of tesco atm.

 

[Hoggums]

The dotcom was useful for a lot of people. The snag is, what is there now? What is the next bubble to ride up?

Gold, Silver, oil to name a few....

 

[Liquid validity]

Gold, Silver, oil to name a few....

Out of the 3 I reckon oil is the one that will actually surprise the most.

 

[nunrgguy]

Out of the 3 I reckon oil is the one that will actually surprise the most.

It depends what instruments you use to play them too as it can be pretty misleading, especially if you're buying dollar denominated securities from elsewhere. Don't forget the currency risk. I recently sold out a holding in petroleum that I'd been holding for quite some time...dollar denominated security, has gone up very nicely (thanks Obama/Fed/Gadaffi) but taking the exchange rate into consideration, not as nicely as you'd perhaps imagined.

 

[Liquid validity]

It depends what instruments you use to play them too as it can be pretty misleading, especially if you're buying dollar denominated securities from elsewhere. Don't forget the currency risk. I recently sold out a holding in petroleum that I'd been holding for quite some time...dollar denominated security, has gone up very nicely (thanks Obama/Fed/Gadaffi) but taking the exchange rate into consideration, not as nicely as you'd perhaps imagined.

True, if not USD trading account and day to day currency, ETF in sterling or currency hedge
would be the way around it.

 

[dmt257]

Im still waiting for the UK housing bubble to pop.

 

[Hoggums]

Im still waiting for the UK housing bubble to pop.

I reckon it'll be a slow deflation rather than a pop.

 

[Liquid validity]

I reckon it'll be a slow deflation rather than a pop.

Ageed, or static prices while inflation takes its toll which in effect is near enough the same.