Cash is king - when to start spending

Having been an avid reader and occassional poster to this forum over the last couple of years it has amazed me the accuracy of many of the projections and insights from some of the posters, not only regarding the property market but also the general financial markets and conditions. Having successfully forecast the demise of the property market (there is no argument here anymore, the property bulls seem to have dissappeared) i think its time to turn some attention to what will happen after the bottom has been reached and how can pinsters take advantage of this. Some (maybe many) pinsters are sitting on lumps of cash. When are you going to start spending, what are you going to spend it on, what indicators will you look at to time your spending. I’m not just talking about property purchases here (we have been through the disucssions on this many times). What about stocks, gold, commodities, etc.

In case you did not notice, growing yer owwn veg seems to be popular here :cry: !!!

Sitting on lumps of cash you say?, i have E63.40 in the bank account, i get paid next thursday, and the weekly shop is tommorow.

Hello overdraft. :frowning:

I can’t see any time soon when there will be anything to take advantage of. Prices are dropping but still rent can be shown to be a more desirable and this gap isn’t showing any sign of change as renting gets cheaper. When it is cheaper to buy the house you want in the location you want then there is the simple opertunity

As for opertunities to buy investment properties with rents decreasing as fast as sale prices and capital depreciation likely to be the case for a good few years yet there has never been a worse time to buy

Good question.
I have a lot of cash and I can’t decide what to do with it. For me it is Analysis Paralysis.
Equities are out along with property. Equities, cause I don’t buy individual stocks, it is a fast way to loose your money. I only invest in Equity Indexes. I would potentially be interested in Health and Energy Indexes. Property is dead and gone.
Commodities is a no, cause I think I’ve missed the boat there.
Government bonds is a maybe but the costs of buying these is too high for my taste.
High Quality Corporate Bonds is a definite possibility as the returns are good. High costs of buying them though.
Inflation linked bonds are also a possibilty as inflation is going to kill off your savings in the next few years. Once again these is a high costs of getting in and out of these.

Currently I have my cash in various different bank accounts trying to jump through the hoops that you need to get through in order to earn decent interest.
BOI sent me a letter 2 weeks back telling me my 7% interest rate was being dropped to 2% so I dropped straight over and withdrew all money. I put it into Rabo. Halifax did the same a few weeks earlier however they were more sneaky. They anounced their drop on the radio. I don’t listen to the radio but I do ask hows my rate every time I drop into Halifax.

BOI along with AIB don’t do bank transfers so they force you to either take a big bundle of cash or pay them 2.60 for a cheque. Now I think some EU law states that they must do bank transfers at 40cents or less so BOI and AIB didn’t like the fact that they couldn’t fleece their customers so they dropped transfers. I was tempted to take cash from BOI but I couldn’t deposit the money in one go as I would fall foul of the anti money laundering laws so I was pretty much forced to go the cheque root.
So I’m getting pretty pissed off dealing with the sneaky banks and I’d like to just put the money someplace good.

www.anpost.ie

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I hope you’re being sarcastic? 10% net over 3 years is an appalling return!

Tongue firmly in cheek… :wink:

sorry my sarco-meter is on the blink today

mainly due to the stress caused by my equity trading ‘friends’ and colleagues

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Decentralised, localised, microproduction will be the way of the world within a decade. How you make serious money out of that I’ve no idea though!

The whole concept of globalisation is based on abundant cheap energy for long-range mass-transport. And until we come up with an effective oil substitute, there’ll be steadily less and less long-range mass transport of physical goods. That game is over, the players just haven’t realised it yet.

Hence all the Pinster amateur gardeners.

I like what I think that arse Cramer calls “new tech” i.e. high end industrial materials production. Worldwide, capital infrastructure is inadequate or creaking and demand is going through the roof for high tech specialised manufacturing e.g. PCP, ABB, RSTI, PBD (ETF)

China is the other big story - I like HAO (ETF) but dreadful price spread. GXC another ETF I like, FXI not so much.

Green energy of course - PUW (ETF), PKN (Nuclear ETF)

CRH I’ve long been a fan of, great moat and solid business plan.

I own all the above personally. They’re not sexy, just profitable.

i think demand for independent living facilities for the elderly will be a future growth area, also mechanical aids and robots to help older people live independently.
we bought a iRobot vacuum that cleans the floors by simply hitting a button, my mother thought this was the answer to her dreams. (warning, these things serious traumatise pets, our cat wasn’t normal for months after)
i read some time ago (it might have been a Time mag piece) that the trend in Japan is the revitalising of urban centres with dwelling design focused towards bringing as many facilities together so that a greater number of elderly get better services. sorry if it doesn’t sound sexy but aging is a growing trend. i come from a family of five, as did a lot of people i went to school with, now families are having an average of two children.

another area i think is ripe is the outdoor holiday option in Ireland, yeah i know the weather sucks but good campsite facilities can make a good holiday. there are lots of them in europe. one camp site in new zealand charged €20 for a campervan berth. the toilet block had underfloor heating, marble top counters, a mini-cinema, internet, sauna, fully equiped kitchens and dining area, and a bus link to the town centre. when we were there it was there winter, just like here, but the campsite made me think if i could just get in a van and drive to the west coast of ireland to a campsite like that then i could enjoy the scenery and the walking without having been fleeced.

but if you really want to make a killing on the back of the crash then starting your own religion would be a good move. just keep promising salvation from the woes of the world. don’t get bogged down in detail, if someone says they don’t believe you ignore them, but if you have to wing it, just say a higher intelligence speaks through you but you do not know their mind.
EAs have been doing this for years with great success. best of luck.

I second that. However the point is you don’t but you continue the wonderful proverbial that is a happy life in this reality.

Nano-Fabrication is the holy grail and we will achieve it.

Freight costs did rise sharply over the past year but have fallen again recently.

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PS
Green Energy Investors is worth a read for anyone interested in investing in alternative energies.

greenenergyinvestors.com/