OK then.......is now a good time to buy shares?

[scaryfucker]

My DH keeps banging on about buying shares in Barclays Bank. He has been watching the share price and it has plummeted. He thinks we will "make a killing" when the share prices inevitably rise after this "recession" we are in (or going into).

What do we think?

1. buying shares at all

2. buying shares in a < sharp intake of breath > bank

Opinions most gratefully received.

Message withdrawn

I think now is a good time to buy shares and I agree about spreading your risk. I think things are set to get worse around Dec as we should "officially" be in recession when the next economic growth figures come out. I don't think there is anything that is "safer" at the moment as everything seems to be getting hit pretty hard.

Tbh, I would only consider investing money you would be prepared to loose!

And your probably looking at a minimum investment period of 2 years to see a good profit.

i wouldnt really bother right now and certainly not in the banking sector. There is still alot of toxic exposure to derivatives and the like in there, but we dont know how big it is. You are going to see alot of volatility in the stock markets in teh coming monthsm and while on a 5 year view i think things will be higher, this is a prolonger recession we are in for. We are looking at deflation, not inflation geoing forward from here...and deflation is very bad news for equities (shares), but good news for people who have cash.

If you want to buy shares - buy a managed fund so you diversify your risk - stay away form the banks....seriously!

hmm, yes

I think dh is being unrealistic here. He imagines we will "ride out" a recession in 6 months or so then shares will shoot back up. Too simplistic (and too easy) methinks.

He wants to take money out of an ISA to fund his plan. I am not keen, but not really knowledgeable enough to argue why.

HW, what makes you predict deflation? Does recession cause deflation. I am clueless really, probably why I don't want to play around with our money (not that we have much).

"Don't play with what you can't afford to lose" strikes a resounding chord with me.

Might have to put the choker chain back on dh

HI scary

sorry i havn't come back to you - have been away.

The reason i think we will get deflation is that yes, in part you do get deflationary pressure in a recession, but now you also have to combine that with the fact that commodities prices are falling, house prices that have further to fall and the fact that as demand for goods and services declines, people spend less, and manufacturers cut prices to try and stimulate demand. Of course at some point if governments world wide try to spend their way out of recession we will get inflation back in the system, but not yet.

I would not expect the stock market to go off to the races again for at least a year....sit on your cash. And as you saiud, if you can't afford to lose it, don't play with it, although as i said if you are buying a managed fund you are still going to get an exposure to shares, but with lower risk.