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Post by parkindaw on Mar 19, 2020 11:41:44 GMT
Hi everyone,
This is my first post on this forum which I discovered just yesterday doing some research.
I'm a laymen investor with a low 5 digit number invested in RS.
Given the harsh times we are in (pound plunge, Brexit, Coronavirus) is there any reason to fear losses on RS?
Specifically, is the delay in releasing investments a sign that it's time to take things out of the market before it's too late or is there little chance that RS investment would hit?
Your take on this is much appreciated!
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Post by ruralres66 on Mar 19, 2020 12:07:14 GMT
I know what I think....
Here’s why the dollar is soaring
'Markets were so ugly yesterday that it was pretty easy to ignore what would otherwise have been the biggest story of the day – the fact that sterling plunged to its lowest level against the US dollar since the days of the miners' strike.'
"Here’s why the dollar is soaring Markets were so ugly yesterday that it was pretty easy to ignore what would otherwise have been the biggest story of the day – the fact that sterling plunged to its lowest level against the US dollar since the days of the miners' strike.
It’s partly because the Bank of England and the chancellor have been more aggressive than most countries so far in terms of financial support pledged to the wider economy.
The chancellor is promising a package worth at least 15% of GDP, while the new governor of the Bank of England – Andrew Bailey – has basically promised open-ended quantitative easing to provide working capital for big businesses. He also said he remains open to printing money to fund government infrastructure projects, which is pure MMT (Modern Monetary Theory).
Given those moves, you’d expect sterling to struggle a bit. (The European Central Bank has caught up a bit since but it’s still moving at its usual sluggish pace in terms of getting ahead of events).
However, this isn’t really about the pound. It’s about the dollar. The US dollar is the global reserve currency. When things go properly pear-shaped, there’s only one asset that everyone really wants, and that’s cash. And the specific form of cash they want is US dollars.
If you have US dollars in a crisis like this, you can ride out the ups and downs. US dollars represent the ultimate form of liquidity (and yes that includes gold – liquid but still volatile – and even US government debt)."
But demand for dollars is so high that it is strangling the money available for anything else. It’s similar to the problems of being on the gold standard all over again.
The advantage of the dollar standard (and you can argue that this is a disadvantage too – I’ll park the economic and hard money debates for the moment) is that you can print dollars and parcel them out. You can’t print extra gold (which is one reason why we like it so much). But if there’s a dollar shortage, the US central bank should be able to address that.
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Post by dan1 on Mar 19, 2020 12:30:20 GMT
<snip>
However, this isn’t really about the pound. It’s about the dollar. The US dollar is the global reserve currency. When things go properly pear-shaped, there’s only one asset that everyone really wants, and that’s cash. And the specific form of cash they want is US dollars.
<snip>"It's about the dollar" doesn't explain this.... I've always thought of MoneyWeek as the 4th Way of UK share investing, that is overrun with vested interests. The headline of "Extraordinary times create extraordinary opportunities" is reminiscent of the comms from HL... if markets are down then don't miss opportunities to pick up shares at bargain values or if markets are up then don't miss out on the market upturn, i.e. please don't stop investing your cash on our platform!
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Post by parkindaw on Mar 19, 2020 14:01:38 GMT
Thanks for your input ruralres66 and dan1!
I still didn't get a good picture about whether there is material risk over my funds in RS?
If there is risk, what is the scenario that might unfold leading to loss of funds on RS and which foreshadowing signs would there be before anything like that happens?
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Post by Deleted on Mar 19, 2020 14:43:25 GMT
Thanks for your input ruralres66 and dan1! I still didn't get a good picture about whether there is material risk over my funds in RS? If there is risk, what is the scenario that might unfold leading to loss of funds on RS and which foreshadowing signs would there be before anything like that happens? See this post p2pindependentforum.com/post/373736/thread
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Post by parkindaw on Mar 19, 2020 18:20:46 GMT
Thanks inv11
Curious to hear what others think (combination of Coronavirus, brexit and £ plunge -> possibility of negative returns on RS)?
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Post by Ace on Mar 19, 2020 19:12:51 GMT
RS were struggling and failing to stop the PF from hemorrhaging before CV arrived. It was very likely that haircuts would soon be de rigueur. I can't see any reason to suppose that CV will have improved things.
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Post by cheapaschips on Mar 20, 2020 14:15:37 GMT
If you manage to get all or any of your money out of any of the P2P companies at the moment, you should consider yourself very fortunate indeed.
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jane
Posts: 145
Likes: 214
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Post by jane on Mar 21, 2020 15:23:59 GMT
From reading Ratesetters last accounts / annual report, my interpretation is that Ratesetter need to have a good year for things to be ok. If things don't go well then they are likely to need to find additional funding otherwise they will struggle to operate as a going concern.
- Things are not going great currently - Things don't look likely to improve any time soon - Not sure that there will be many people rushing to invest what money they have left in a P2P platform.
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Post by stevepn on Mar 23, 2020 15:57:50 GMT
Thanks for your input ruralres66 and dan1! I still didn't get a good picture about whether there is material risk over my funds in RS? If there is risk, what is the scenario that might unfold leading to loss of funds on RS and which foreshadowing signs would there be before anything like that happens? If you are unsure about your money in RS just take your money out and put it somewhere safe and put it back in RS at a later date.
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Post by ruralres66 on Mar 23, 2020 16:03:15 GMT
That's what I have decided to do, until the dust settles or not as the case may be..... I have left my ISA in the 1 year for now as I only really use that account.
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Post by ruralres66 on Mar 23, 2020 17:43:33 GMT
this is looking hopeful for my RYI at 4.8%
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Post by Deleted on Mar 23, 2020 17:45:55 GMT
this is looking hopeful for my RYI at 4.8% The RYI are affected by liquidity rather than market rates. RS takes the pain/gain of higher/lower rates.
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Post by erniec on Mar 23, 2020 18:48:45 GMT
Unless I’ve completely misunderstood, surely all this 1 year money completely ties up lenders money for a year and doesn’t help RYIs, in fact the opposite.
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Post by ruralres66 on Mar 23, 2020 22:28:56 GMT
Unless I’ve completely misunderstood, surely all this 1 year money completely ties up lenders money for a year and doesn’t help RYIs, in fact the opposite. I am in one year and I want out. If others are piling to take up offers that gets me out sooner rather than later does it not?
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