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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to wonder why there isn't a single thread about the stock market ?

89 replies

MrGin · 10/08/2011 17:04

there are threads about knickers, threads about politeness ( or not ) , lots of threads about riots, threads about lunch venues, threads about holiday wardrobes.

But not a single one about the fact the global stock market is currently dropping like a stone.

Is this not an important issue ? Do mums not get involved in these discussion. Or is there a financial section of MN I' missing. Is no one worried ?

Actually there is one thread on chat about banks, but that turned into a personal attack on a personal issue.

I'm by no means a financial wizz ( far from it ) but even when I see stock markets falling 6% , 5% in a day on consecutive days I can't help but thing something rather bad is happening right now.....

OP posts:
MissusCT · 10/08/2011 18:41

I just don't understand it.

For example, the news tells me the FTSE is 2% down - what does that mean? I don't know if I should react with, "oh, 2%, oh dear" or "OH DEAR GOD 2%! WE ARE DOOOOOOOOOOMED!"

Whatmeworry · 10/08/2011 18:42

The stock market is like a mantra on the daily news but it doesn't mean much on a day to day basis, it's just a view of the future profits of some large companies and is driven by irrational emotion that bears little relationship to the underlying economy, companies or consumer.

It was where it is now about 8 months ago - next week it'll go up again, and then done again. If it halves in 3 months I'll worry.

HTH

catgirl1976 · 10/08/2011 19:53

Well its old news. 10 days ago it probably would have been a relevant thread to start. Not so much now.

EdithWeston · 10/08/2011 20:00

New news, old news, whichever - I thought people might like to have a look at this umm bizarre pic from The Telegraph which illustrates how European stock markets have been bled dry.

flyingspaghettimonster · 10/08/2011 20:10

Well, I put my hands up to neither knowing about the stock market nor caring about it. I have no shares and anyone I know who have portfolios are all fine holding onto their shares, no need to sell them, so no problem. I guess a lot of other Mumsnetters are in the same position, so would only start a thread about it if people started committing suicide all over the place about it...

catgirl1976 · 10/08/2011 20:11

It is pretty terrible but I think a lot of people have liquidated now already, or some brave souls are buying cheap while they can!

pointydog · 10/08/2011 20:11

Jesus wept. Change your forum, gin. Don;t be so useless.

Earlybird · 10/08/2011 21:33

So - let's talk about it.....

Seems to me that whenever the price of gold goes up, the stock market drops. Is that because people see gold as safe (so demand/price goes up), as people abandon their stocks (which seem unpredictable and risky)?

And why, do you think, have there been such huge swings up and down (mostly down) instead of the more modest drops that were previously 'normal'?

catgirl1976 · 10/08/2011 21:35

Eurozone problems and the down grading of USA's credit rating are the main reasons

Earlybird · 10/08/2011 21:57

Simplistic answer. There have been Eurozone problems for months. Why are market drops suddenly so severe. And US downgrade only affected the market from Monday...

catgirl1976 · 10/08/2011 22:01

Well people knew the downgrade was coming. Public debt is continuing to rise. The asian markets are now affected. Italy and Spain could lose all access to debt markets which IS a new deveopment and we cannot bail out economies of that size. There are rumours France is going to be downgraded too.

Earlybird · 10/08/2011 22:06

Greece, Italy, Spain, Ireland and Portugal all teetering.

What is the strategy? Who is responsible for the strategy? EU? EMF? Someone else?

And what about Trichet - does he have a plan, and are people confident in his abilities?

catgirl1976 · 10/08/2011 22:09

I think we will end up printing more money and I am far from confident that there is a coherent plan.

DialsMavis · 10/08/2011 22:12

Can someone explain how the world financial problems will effect me? We are moving into a very expensive house next week that we will struggle to afford at first but are making the move to London for DPs job. I am in my final year at uni, DP has a job in fast growing and successful company, he doesn't earn mega bucks but is working his balls off to change this. We have 2 children and no investments, savings or pensions but also no debt except my student finance. We get by- decent food, clothes when we fancy them, days out etc but not foreign holidays unless my Dad treats us (he lives abroad).

How much should we be panicking? and what should I be doing about it?

DialsMavis · 10/08/2011 22:16
  • house is rented BTW
GnomeDePlume · 10/08/2011 22:17

Computerised trading is a huge factor. There are many computerised tracker funds which essentially follow the market and therefore accentuate peaks and troughs.

The day to day trading is little more than casino trading. Buy low and sell high. Day to day stock prices seldom represent the true value of the business in which the investment is held. Certain types of stock fall in and out of favour - the 'dot com' bubble was all about fashion.

The best advice I have ever heard about investing is only invest in businesses you understand.

catgirl1976 · 10/08/2011 22:18

TBH - you probably dont need to panic too much as it sounds like you have no savings, investments or mortgage. However, the key is IF you (or your DH) can keep working as the job situaiton gets worse. If you can you should be ok but inflation is likely to rise and wages won't - this and job security are the 2 areas ywhere ou are likely to feel an effect

DialsMavis · 10/08/2011 22:25

Thanks Catgirl. I have never been so glad that ExH kept our mortgage and threw DS and I out when we split! So if we keep our heads down and squirrel away what we can we might be alright?

catgirl1976 · 10/08/2011 22:27

I think so - although I think times will be tough for everyone, people without mortgages and with nothing to lose in investments will be ok as long as they can keep working and can maintain a position where they can manage the rising living costs.

Of course if we all end up taking our wages home in wheelbarrows and find that they won't stretch to a loaf of bread we could all be in trouble :)

Earlybird · 10/08/2011 22:37

Gnomedeplume - yes, that is the philosophy of Warren Buffet, and I think he is right.

I agree that the stock market feels more like a casino. I think I am able to manage my modest portfolio of individual stocks reasonably well, but worry about my pension which I don't control nearly as much (or as well) because it is invested in funds (and managed by a big firm).

Al0uiseG · 10/08/2011 22:39

I actually feel that we are possibly on the cusp of a huge change. Qe2 will lead to massive inflation. Inflation is our worst enemy, historically it has always led to war.

It's so depressing that it's nice to come here for a bit of light relief. Dh and I can discuss doom and gloom til the cows come home, but apart from a bit of tweaking investments there is actually nothing we can do about it.

I can't stress about what I have no control over. I can plan for certain eventualities, that's as far as my superpowers extend.

So MrGin, what's your agenda?

DaisySteiner · 10/08/2011 22:40

Something I don't understand is why people keep talking about inflation increasing as a result of the current economic crisis??

Whatmeworry · 10/08/2011 22:58

The only way out of the current crisis is to inflate, makes all the debts smaller.

rainbowtoenails · 10/08/2011 23:31

Erm, I started one.

nickelbabe · 11/08/2011 11:45

that's okay Edith :)

That comment was more "if it didn't exist in the first place" rather than "they should abolish it now"

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