Asset Values

[soulstyledevon]

Cash is definitely NOT King at the moment. Rotting away in a no interest account. As usual property or land seems good.

Let’s see...
What happens when a couple of million people join the dole que...?
To be fair the property market has needed a correction for sometime.

 

[Jodalo]

The positive with cash is it will hold its value. I think this pandemic will hit everything with a value including property.

I need to stop looking at my pensions as it is eye-watering the drop in value over the last few weeks.

It’s not holding it’s value against the US dollar or the Euro at the moment and inflation is continually gnawing away at it.

 

[Ch1pbutty]

Thursday, March 19, 2020
Oil prices plunged on Wednesday with WTI touching an 18-year low, as governments around the world accelerated lockdowns in the face of the coronavirus pandemic. WTI fell much more sharply than Brent, which was attributed by analysts to the dismal outlook in physical markets with U.S. exports about to be severely hurt by the Saudi ramp-up. Brent settled $3.85/bbl lower at $24.88/bbl, after trading to an intra-day low of $24.52/bbl. WTI lost $6.58/bbl – nearly a quarter if its value – to settle at $20.37/bbl, after plumbing a low of $20.06/bbl during the day. The U.S. EIA reported on Wednesday that U.S. crude oil inventories rose while gasoline and distillate stockpiles fell last week, based on data that mostly pre-dates the industry’s response to the latest oil price collapse. During the week ended March 13, commercial inventories of crude oil in the U.S. rose by 2 mil bbls to 453.7 mil bbls – the highest level since July 2019. This was slightly lower than the 3.3 mil-bbl increase that was expected. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 563,000 bbls, the EIA added. U.S. gasoline stockpiles fell by 6.2 mil bbls to 240.82 mil bbls, which was far more than expectations for a 2.9-mil-bbl drop. Inventories of distillate fuels dropped by 2.9 mil bbls to 125.12 mil bbls, which was close to expectations for a 2 mil-bbl decline. Refinery crude runs rose by 118,000 bpd last week, with refinery utilisation rates unchanged. On Tuesday, industry group the American Petroleum Institute said that U.S. crude inventories fell by 421,000 bbls last week, with stockpiles at the Cushing, Oklahoma hub higher by 66,000 bbls. Gasoline inventories plunged by 7.8 mil bbls, while those of distillate fuels declined by 3.6 mil bbls, the API reported. Refinery crude runs rose by 160,000 bpd, the API data showed.

 

[calibeach76]

Cash is only real like anything else if it is tangible The push to card payments and the death of cash further strengthens the state's control over us all. We now have generations who know nothing of real cash and the cash economy. Debt is their normal, investment and saving is alien. Most of my age no matter what salaries have huge mortgages, car debt etc but f**k all in real tangible assets. At 43 I have always felt old before my time (perhaps having a father who lived through the last war taught me financial values that to most of my age and younger mean nothing). This at best is going to be a huge financial reset but one where sadly only a few will come out on top no matter how well prepared. With regard to cash, it is only worth something if the inflationary economic situation is stable. Cash is useless in a barter led survivalist world. Skills and an ability to trade will be what sees the survivors through.

 

[ArunAlec]

He came a cropper for different reasons - and investors in his funds should thank their lucky stars he crashed and burned when he did, or they would be looking at another 30% drop on top of what they'd already lost.

I'm not sure the end is in sight, at least not for us here in the UK. We've been getting quotes for a kit house from Germany. When we started the pound was about £1.20, it's now about £1.05, so a lucky UK timber frame company will be getting the order. Although they import their wood (it's better quality), so we can expect their prices to rise soon.

Given the drop against the Euro, everyone should brace for at least 5% inflation soon.

My point was that if an expert like Woodford can, for whatever reasons, get it wrong, then the likes of most of us should be very cautious of “playing” the market. It’s not for the faint-hearted.

 

[ArunAlec]

Cash is only real like anything else if it is tangible The push to card payments and the death of cash further strengthens the state's control over us all. We now have generations who know nothing of real cash and the cash economy. Debt is their normal, investment and saving is alien. Most of my age no matter what salaries have huge mortgages, car debt etc but f**k all in real tangible assets. At 43 I have always felt old before my time (perhaps having a father who lived through the last war taught me financial values that to most of my age and younger mean nothing). This at best is going to be a huge financial reset but one where sadly only a few will come out on top no matter how well prepared. With regard to cash, it is only worth something if the inflationary economic situation is stable. Cash is useless in a barter led survivalist world. Skills and an ability to trade will be what sees the survivors through.

I’m currently looking at buying a car and notice the change you describe. Back in the “good old days” when cash was king, you could get a bit of discount if you said you were paying cash. Now the dealer assumes you want a credit plan and is not in the slightest impressed with a bulging wallet!

 

[willwander]

Now a case of choosing best time to buy

Careful, there will be lots of false hope. Markets often reach a bottom two months after the first big rally.
Cash is king, if you have it to spend, there may be bargains

'Dollar cost averaging' may be a decent strategy over the coming months

 

[Jontymo]

It’s not holding it’s value against the US dollar or the Euro at the moment and inflation is continually gnawing away at it.

It’s not holding against foreign currencies but will probably buy you a lot more in the coming weeks in the UK

 

[AndyWT]

Today’s cars and maybe campers are so complicated longer term value is a big unknown, I recently scrapped my 10y old Citroen C4 Picasso as so many electronic things or components controlled by electronics are costing too much to repair and unavailability of parts, it was cheaper to cut my losses and get rid of it, I couldn’t get one offer for it, tax & ins was due, so scrapped it.

T5 2.5 Tdi Cali’s are an unknown due to the engine which are expensive to repair and some parts unavailable, ie alternator drive, and the other big issue plasma coated cylinder bores, apart from transporters not many VW’s used this engine.

T5 Cali’s with the 1.9 and 2.0 Tdi will be around awhile, although looking at my sun in-laws 2011 camper conversion maybe not, it’s got a lot more rust than my 20y old T4 Cali.

The T5/6 Bi-turbos could be a bit debilitating to the wallet.

Under the current situation which is going to last some time and probably cause a world wide economic crisis, I’m pleased my 20y old T4 Cali is paid for and ready to go for extended travel as soon as the present malaise ends.

 

[Nolan]

I don't suppose the vehicle is worth much less that it was a few weeks ago (long term) but at the moment the last thing WBAC need is to be sat on a bunch of cars they may not be able to shift for 6 months or more. Unless they pay peanuts for them.

 

[pjm-84]

WBAC office next to mine. Roaring trade the first few days. Now tailed off.

Prices are determined by algorithms. Computer says no at the moment. The market dictates price. The bottom has now fallen out of the market

 

[ArunAlec]

WBAC office next to mine. Roaring trade the first few days. Now tailed off.

Prices are determined by algorithms. Computer says no at the moment. The market dictates price. The bottom has now fallen out of the market

Wonder if that will be reflected in used deals at main dealer!

 

[westfalia]

I’m currently looking at buying a car and notice the change you describe. Back in the “good old days” when cash was king, you could get a bit of discount if you said you were paying cash. Now the dealer assumes you want a credit plan and is not in the slightest impressed with a bulging wallet!

Make sure its Porsche Approved

 

[ArunAlec]

Make sure its Porsche Approved

Sort of come to the conclusion that it’s either from OPC or at least insist on getting the Porsche Approved Warranty as part of any deal.

 

[Paul Grice]

My pension pot is down 30%

So is mine... I retire in 10 days. The value is utterly irrelevant, all the matters is whether the companies continue to exist and pay dividends.... albeit at a depleted level for a while.

 

[Blue Yonder]

Be fearful when others are greedy and greedy when others are fearful.

 

[Amarillo]

As usual property or land seems good.

What happens to the homes of 250,000 elderly homeowners when they become late homeowners?

 

[Jay gas]

What happens to the homes of 250,000 elderly homeowners when they become late homeowners?

Quite a few get sold for a lot less than they are worth now when the property market goes balls up I would think

 

[Jodalo]

What happens to the homes of 250,000 elderly homeowners when they become late homeowners?

They will pass down the line in accordance with the deceased’s wills or probate as usual.

 

[Amarillo]

They will pass down the line in accordance with the deceased’s wills or probate as usual.

Yes - and as soon as they can, relatives put them on the market. It is bound to depress property prices.

 

[pjm-84]

Not looked. Don't want to.

Okay have looked. Pension pot down 45k. I should have bought the Range Rover

 

[Jay gas]

Yes - and as soon as they can, relatives put them on the market. It is bound to depress property prices.

Not to mention all those who will no longer be able to afford there houses after this crisis. Geeezz it just gets worse

 

[pjm-84]

Just told the wife. She replied "Oh my God"...…. that made me laugh.

 

[Jay gas]

Just told the wife. She replied "Oh my God"...…. that made me laugh.

He ain’t gonna help he’s probably a socialist

 

[Jodalo]

Yes - and as soon as they can, relatives put them on the market. It is bound to depress property prices.

Not necessarily, the housing market is stagnant at the moment. Some may sell on for the market values (high at present). Others may put them on the rental market.