quidco
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Post by quidco on Apr 3, 2019 12:21:36 GMT
Despite them receiving money "for everyone" from Lendy Clearly, we are at the bottom of the feeding chain! This is such bad publicity for Lendy, to ask their lenders to fork out yet again. It should/MUST be settled by Lendy.How lendy intend to salvage such a reputation of leaving their lenders out in the cold through their actions is unfathomable. Well I currently haven't lost any money with them and out of all the many P2P platforms they may well have acquired the best organisational experience given what they're going through; plus another generation always comes along with new money. Look at the current enthusiasm for stock markets that have lost more than 50% value twice in the last 20 years
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agent69
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Post by agent69 on Apr 3, 2019 13:22:38 GMT
Clearly, we are at the bottom of the feeding chain! This is such bad publicity for Lendy, to ask their lenders to fork out yet again. It should/MUST be settled by Lendy.How lendy intend to salvage such a reputation of leaving their lenders out in the cold through their actions is unfathomable. Look at the current enthusiasm for stock markets that have lost more than 50% value twice in the last 20 years Which stock markets are you referring to? Certainly the FTSE100 hasn't lost over 50% of its value ever (let alone in the last 20 years). Also stocks pay dividends, so the share price is only part of the story.
The big difference between stocks & shares and P2P is that stocks can (and historically do) recover from crashes, and you get all your money back. If your P2P portfolio halves in value because a load of loans have defaulted with inadequate security, you're stuck with the loss for ever.
- Stocks and shares - maximum downside 100% loss, maximum up side theoretically unlimited
- P2P lending - maximum downside 100%, maximum upside about 12%
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Mucho P2P
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Post by Mucho P2P on Apr 3, 2019 13:22:51 GMT
Clearly, we are at the bottom of the feeding chain! This is such bad publicity for Lendy, to ask their lenders to fork out yet again. It should/MUST be settled by Lendy.How lendy intend to salvage such a reputation of leaving their lenders out in the cold through their actions is unfathomable. Well I currently haven't lost any money with them and out of all the many P2P platforms they may well have acquired the best organisational experience given what they're going through; plus another generation always comes along with new money. Look at the current enthusiasm for stock markets that have lost more than 50% value twice in the last 20 years I have not lost capital either, just suffered a "capital shortfall" that lendy refuse to define Agreed on stock markets, but note it is a slightly different game, as there is potential capital appreciation as well to offset potential declines.
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Post by charliebrown on Apr 3, 2019 13:25:02 GMT
Lendy has been a life changing experience for me. I have withdrawn whatever I can from all P2P and gone into the stock market. I am doing very well since January, and will never return to P2P. I would rather suffer a 40% wipeout in a recession than hand my hard earned money to a bunch of <potentially libellous comment removed>. Atleast with the stock market shares do recover, with P2P your money goes into a black hole never to be seen again. I can relate to this. At first I loved the idea of p2p, bringing together investors with surplus funds and borrowers needing funds for a legitimate purpose. Deals transacted through a reputable platform that would perform stringent due diligence and manage progress/repayments. However, in practice, the borrowers are shysters, the people running the platforms are wide-boy <potentially libellous comment removed> and the valuers are <potentially libellous comment removed> (cynics might think they are in cahoots). The upshot being that everyone makes quick and easy money, apart from the investors who lose their shirts.
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IFISAcava
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Post by IFISAcava on Apr 3, 2019 13:32:52 GMT
Lendy has been a life changing experience for me. I have withdrawn whatever I can from all P2P and gone into the stock market. I am doing very well since January, and will never return to P2P. I would rather suffer a 40% wipeout in a recession than hand my hard earned money to a bunch of <potentially libellous comment removed>. Atleast with the stock market shares do recover, with P2P your money goes into a black hole never to be seen again. I can relate to this. At first I loved the idea of p2p, bringing together investors with surplus funds and borrowers needing funds for a legitimate purpose. Deals transacted through a reputable platform that would perform stringent due diligence and manage progress/repayments. However, in practice, the borrowers are shysters, the people running the platforms are wide-boy <potentially libellous comment removed> and the valuers are <potentially libellous comment removed> (cynics might think they are in cahoots). The upshot being that everyone makes quick and easy money, apart from the investors who lose their shirts. As always, I think its a mistake to think it is "either or". I have good sums in both - I wouldn't feel well diversified if I had everything in the stockmarket.
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boundah
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Post by boundah on Apr 3, 2019 14:00:42 GMT
Lendy has been a life changing experience for me. I have withdrawn whatever I can from all P2P and gone into the stock market. I am doing very well since January, and will never return to P2P. I would rather suffer a 40% wipeout in a recession than hand my hard earned money to a bunch of <potentially libellous comment removed>. Atleast with the stock market shares do recover, with P2P your money goes into a black hole never to be seen again. I'm a lot more cautious about P2P now too, but at least I have always spread my investments across a number of asset classes. Individual shares can have 100% wipeouts too (Jarvis, Carillion et al) - the fact you have 'done very well since January' in the stockmarket is hardly a useful yardstick for savings with a decades-long duration. For what it's worth, my total interest across the 5 P2P platforms I have used over the last 5 years is now more than the total of defaulted loans I still hold. Of course more may yet default, but on the other hand I expect many of the defaults to repay at least some of their principal eventually. So all in all P2P is still an asset class I plan to stick with for a proportion of my investments.
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quidco
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Post by quidco on Apr 3, 2019 14:23:35 GMT
Look at the current enthusiasm for stock markets that have lost more than 50% value twice in the last 20 years Which stock markets are you referring to? Certainly the FTSE100 hasn't lost over 50% of its value ever (let alone in the last 20 years). Also stocks pay dividends, so the share price is only part of the story.
The big difference between stocks & shares and P2P is that stocks can (and historically do) recover from crashes, and you get all your money back. If your P2P portfolio halves in value because a load of loans have defaulted with inadequate security, you're stuck with the loss for ever.
- Stocks and shares - maximum downside 100% loss, maximum up side theoretically unlimited
- P2P lending - maximum downside 100%, maximum upside about 12%
Stock markets may well recover but what is your investing horizon? The Dow took about 25 years to recover from the 1929 crash. If it did that now I'd be in my early 80s before I got my money back. FTSE 100 was at 6500 in January 2000 and continued down to 3500 in March 2003. Got to 6700 in July 2007 and then went down until 3500 in March 2009. It then took about 6 years to recover back above 6700 in 2015 (plus a quadrillion dollars of central bank money)
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p2p2p
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Post by p2p2p on Apr 3, 2019 14:35:18 GMT
Its never wise to quote raw indexes, always quote Total Return values, where dividends are reinvested.
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Post by robberbaron on Apr 3, 2019 15:31:05 GMT
- Stocks and shares - maximum downside 100% loss, maximum up side theoretically unlimited
- P2P lending - maximum downside 100%, maximum upside about 12%
The maximum upside/downside are of little relevance. The maximum downside of a lottery ticket is a couple of £, the maximum upside is several millions £ but you are virtually guaranteed to always achieve very close to the maximum downside. What matters is how likely all the possible outcomes are.
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