Investing and personal finance

[FitnessFrenzy]

Mr. Anabolic, I'd like to let you know that I just got long gold this morning during the large down move. Needed a core position for my IRA, so I went with GLD although I usually like to use futures in my other margin account. Also sold OTM calls against the position since vol is decent in there. It's rallied since I bought it and the calls have also come in a little bit surprisingly. I'm not a chart guy, but it doesn't look pretty. Just seems oversold in such a short period of time.

do you also own silver?

[Mr Anabolic]

Mr. Anabolic, I'd like to let you know that I just got long gold this morning during the large down move. Needed a core position for my IRA, so I went with GLD although I usually like to use futures in my other margin account. Also sold OTM calls against the position since vol is decent in there. It's rallied since I bought it and the calls have also come in a little bit surprisingly. I'm not a chart guy, but it doesn't look pretty. Just seems oversold in such a short period of time.

Nice.  However, I wouldn't be surprised if gold re-tested $1080 though.  Silver has short term support at $16 and longer term support at $15.  I do not do paper gold or silver, only physical.  I buy more every time the price drops significantly.  For me, precious metals are for l-o-n-g term wealth protection/storage, not for trading or quick profits.

[FitnessFrenzy]

[DroppingPlates]

Voodoo inVestor Vince has a cute bow tie

[denarii]

when there is a recession these P2P lending platforms will collapse.

[FitnessFrenzy]

when there is a recession these P2P lending platforms will collapse.

I am not so sure. I guess we will have to see what happens.

[Skorp1o]

when there is a recession these P2P lending platforms will collapse.

Those who invest in them I.e. the individual lenders are not covered by the FSCS. Why would anyone take that risk when huge banks went under....small independent companies can go bust at any one point....mark my words there's a scandal waiting to happen here very soon.

[Mr Anabolic]

when there is a recession these P2P lending platforms will collapse.

I think it will take more than a recession for that to happen... has to be something big and/or unexpected.  I was actively trading during the crash of 2008/2009.  I made the largest amount of cash I've ever made (in 1 day) during those DOW 1000 point swing days.  At that time however, most trading platforms were having problems and much slower response times.  

[Skorp1o]

I think it will take more than a recession for that to happen... has to be something big and/or unexpected.  I was actively trading during the crash of 2008/2009.  I made the largest amount of cash I've ever made (in 1 day) during those DOW 1000 point swing days.  At that time however, most trading platforms were having problems and much slower response times.  

P2P lending platforms are far more fragile, besides they're subject to less capital reserves than big banks too.

[FitnessFrenzy]

P2P lending platforms are far more fragile, besides they're subject to less capital reserves than big banks too.

remember that the P2P lending companies have few employees and few expenses, so it would take a lot for them to go bust.

[FitnessFrenzy]

[Skorp1o]

remember that the P2P lending companies have few employees and few expenses, so it would take a lot for them to go bust.

They run on tight margins...people start to default and they have no buffer to absorb the hits. It nearly happened to one of the big lenders the name escapes me. The smaller ones are more likely to crumble

[FitnessFrenzy]

They run on tight margins...people start to default and they have no buffer to absorb the hits. It nearly happened to one of the big lenders the name escapes me. The smaller ones are more likely to crumble

Lending Club?

We are all in this topic to get wiser, and I don't want to disagree with you if good arguments are brought to light that will make me change my mind. 

[Skorp1o]

Lending Club?

We are all in this topic to get wiser, and I don't want to disagree with you if good arguments are brought to light that will make me change my mind.  

I'm not too familiar with how things go in the US...but here if the bank goes bust money invested up to a certain limit is covered by a compensation scheme which effectively insurance. P2p in the U.K. Are not part of that scheme so if one goes bust I'm likely to never see my money back.

But, as with all investing it is up to the inidividual to invest based on their risk appetite...but one rule everyone should embrace regardless of investing strategy is to diversify. Whether you like gold, oil, equities...futures...etc always diversify

[Erik C]

Any "caring" investment strategy, is a bad investment.

[Skorp1o]

if you look at a historical gold chart, it has some weird price moves sometimes. I don't own gold. Maybe I should?

For hedging? Yes, for money making, most people usually go elsewhere....if you look hystorically Gold is usually popular when markets are at their worst. But owning some gold is never a bad idea, it is after all the only true international currency.

[denarii]

When you go on p2p sites it's mostly chip shops borrowing unsecured for 6%.

In comparison I have a trade finance deal at 11.5% but I told them to sweeten the deal, we had a senior ship loan recently at 10%, and a 2nd lien hotel loan with 3x overcollateralisation at 16%.

[Skorp1o]

When you go on p2p sites it's mostly chip shops borrowing unsecured for 6%.

In comparison I have a trade finance deal at 11.5% but I told them to sweeten the deal, we had a senior ship loan recently at 10%, and a 2nd lien hotel loan with 3x overcollateralisation at 16%.

As long as you know what you're doing. Are these secured loans?

[denarii]

As long as you know what you're doing. Are these secured loans?

Yes only in p2p can you borrow against no assets. Although in micro finance it's similar but the terms of micro finance are very different.

[BigBen]

why hasn't anyone suggested investing in property? it is one of the most reliable ways of investing and it will always pay itself. if you go for it the first thing to choose is the strategy. I’d say that Barcelona is probably the best option: it’s in the top 15 European property markets with really good prospects for investment, because being a popular destination it also has low interest rates and the demand exceeds the supply. another advantage is that apartments for sale in Barcelona will definitely grow in price with the course of time. if you go for short term rentals you’ll get decent returns - about 5-7% yields. hiring a management company might be a bit of strain but it will help avoiding problems with finding new tenants and the expenses will be rewarded with higher occupancy rates anyway. i'd say that it's worth considering

[FitnessFrenzy]

crazy stock market gains these days! 

[Mr Anabolic]

crazy stock market gains these days! 

It's a bubble, but as bubbles gain momentum, people become euphoric/irrational.  Then, just when you think the market will never go down again, it pops.  We're almost there.  I predict the stock market bubble pops after Trump's inauguration.  My prediction that gold and silver would go down was correct.  I'm buying on the cheap with both hands.  Silver is very undervalued and an incredible deal at current prices ($15-16).

[polychronopolous]

It's a bubble, but as bubbles gain momentum, people become euphoric/irrational.  Then, just when you think the market will never go down again, it pops.  We're almost there.  I predict the stock market bubble pops after Trump's inauguration.  My prediction that gold and silver would go down was correct.  I'm buying on the cheap with both hands.  Silver is very undervalued and an incredible deal at current prices ($15-16).

What are your thoughts on bit coin?

[DroppingPlates]

What are your thoughts on bit coin?

They're like casino fishes

[FitnessFrenzy]