skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787 
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Post by skippyonspeed on Jun 4, 2017 21:02:54 GMT
I'm starting to lose confidence in p2p in general, which is a shame. I think this deserves a new general thread, but this is exactly how I feel, about the P2P sector (not all platforms). I've been lending for 10 years, and professionally worked with three platforms. My expertise is in retail consumer lending, not wholesale, business, SME or property. I'm especially impressed that RateSetter have returned ~£70m in interest to lenders, that might otherwise have been only ~£1m if the same money has been in a savings account. That's a fantastic reflection on what P2P should be aspiring to deliver. But some of the lending occuring on some platforms is mired in incompetence, ignorance of traditional risk management principles to access the borrower and security, and ultimately poor treatment of the customer. Some loans can clearly be defined as irresponsible lending. And don't get me started on the transfer of P2P to Bank.... I still love a couple of platforms, but I'm falling out of love with the sector. The drunks have turned up at the party, maybe it's time to go home.Kevin. I'll drink to hic that........only problem is with every new loan coming it's gonna be further to walk! 
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rogerbu
Member of DD Central
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Post by rogerbu on Jun 5, 2017 13:17:36 GMT
The arguments about leaving LY or the entire P2P market are fine, but where else is there to go. - UK Equities - Corbyn might just get in or Brexit turns out to be as bad as the remoaners claim or the cycle just turns - I am unhappy to invest further in the Uk Market.
US Equities - so overvalued there must be a crash coming
Global Equities - will be hit by a major US crash.
Bonds anywhere - The story that equities going down = bonds going up - never seems to work in practice.
Savings - virtually all returns have a negative real return.
If I could see a good place to go, I would consider shifting out of P2P, but I can't |
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littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
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Post by littleoldlady on Jun 5, 2017 14:20:24 GMT
The arguments about leaving LY or the entire P2P market are fine, but where else is there to go. - UK Equities - Corbyn might just get in or Brexit turns out to be as bad as the remoaners claim or the cycle just turns - I am unhappy to invest further in the Uk Market.
US Equities - so overvalued there must be a crash coming
Global Equities - will be hit by a major US crash.
Bonds anywhere - The story that equities going down = bonds going up - never seems to work in practice.
Savings - virtually all returns have a negative real return.
If I could see a good place to go, I would consider shifting out of P2P, but I can't I agree, in fact I am even more pessimistic than you about those alternatives. However there are worse things than getting a small return (even if a little negative in real terms). Anyone remaining in p2p is risking a serious loss of capital. There is no law that says that there has to be one asset class which will give a good return at low risk. I fear we are moving into a period where there is nowhere to go.
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Post by carol167 on Jun 5, 2017 14:30:34 GMT
The arguments about leaving LY or the entire P2P market are fine, but where else is there to go. - UK Equities - Corbyn might just get in or Brexit turns out to be as bad as the remoaners claim or the cycle just turns - I am unhappy to invest further in the Uk Market.
US Equities - so overvalued there must be a crash coming
Global Equities - will be hit by a major US crash.
Bonds anywhere - The story that equities going down = bonds going up - never seems to work in practice.
Savings - virtually all returns have a negative real return.
If I could see a good place to go, I would consider shifting out of P2P, but I can't I'd rather scale back to a smaller amount in p2p and sit the rest in cash savings accounts for, perhaps, a year loosing a little against inflation than risk loosing large amounts due to potentially turbulent times. That also puts me in a position to jump at/on any opportunities as they arise during the next 12 months. I made hay while the sun shone, so can sit back a bit when the seas start getting a little choppy.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787
Likes: 424
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Post by skippyonspeed on Jun 5, 2017 14:43:25 GMT
The arguments about leaving LY or the entire P2P market are fine, but where else is there to go. - UK Equities - Corbyn might just get in or Brexit turns out to be as bad as the remoaners claim or the cycle just turns - I am unhappy to invest further in the Uk Market.
US Equities - so overvalued there must be a crash coming
Global Equities - will be hit by a major US crash.
Bonds anywhere - The story that equities going down = bonds going up - never seems to work in practice.
Savings - virtually all returns have a negative real return.
If I could see a good place to go, I would consider shifting out of P2P, but I can't I think in these days there is nowhere to put your "savings" and sit back and watch them grow. You have to be prepared to move your cash around on a regular basis because market sentiment can change so quickly. I was quite late coming to P2P ie about 2 years ago, and was happy up to about 6 months ago. But goal posts keep moving.......usually not favourably. I think I will gradually reduce funds in this area......and increase my investment on the stockmarket, aiming to deal on a daily basis, selling at the closing bell every day......long term investments seem to be a thing of the past, unless you are an expert in some area of collectables eg fine art, antiques etc.
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Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
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Post by Liz on Jun 5, 2017 14:58:40 GMT
The arguments about leaving LY or the entire P2P market are fine, but where else is there to go. - UK Equities - Corbyn might just get in or Brexit turns out to be as bad as the remoaners claim or the cycle just turns - I am unhappy to invest further in the Uk Market.
US Equities - so overvalued there must be a crash coming
Global Equities - will be hit by a major US crash.
Bonds anywhere - The story that equities going down = bonds going up - never seems to work in practice.
Savings - virtually all returns have a negative real return.
If I could see a good place to go, I would consider shifting out of P2P, but I can't I'd rather scale back to a smaller amount in p2p and sit the rest in cash savings accounts for, perhaps, a year loosing a little against inflation than risk loosing large amounts due to potentially turbulent times. That also puts me in a position to jump at/on any opportunities as they arise during the next 12 months. I made hay while the sun shone, so can sit back a bit when the seas start getting a little choppy. I too am pessemistic on equities and I don't want to earn zero in cash. So what to do? For now I will stick with p2p as I think over the long term I can still make a good return and have done over the last 5 years. Moving some funds to cash in the short term is also increasingly tempting, especially if I can't find safer loans(too many are far too high risk).
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littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
Likes: 1,862
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Post by littleoldlady on Jun 5, 2017 15:40:48 GMT
If you are staying with p2p but want to reduce risk I would suggest (not advise) platforms which loan against residential. Firstly the valuation is much more likely to be correct, and is easier to check. Secondly valuations will fluctuate less than commercial. Thirdly homeowners are less likely to borrow recklessly as it risks them becoming homeless.
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averageguy
Member of DD Central
Posts: 1,188
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Post by averageguy on Jun 6, 2017 20:57:14 GMT
As always spread the risk and don't get too greedy
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Post by onion12 on Jun 6, 2017 23:04:24 GMT
I can finally say that I'm not leaving lendy I have now left 98% just 2k left in one loan on sale so that best part of 100k out
i done it nice and quiet no screaming and shouting about the sm like many have and are still doing and to be fair that is the main reason imo that the sm is the way it is becouse people won't stop going on about it so that was the alarm bell ringing telling me unless I wanted to hold all my loans to term it was time to get out
I started the proses just over 2 months ago and I then had the probolem what to do with the money and decided it was not just leaving lendy it was leaving P2p for a safer home
I decided no over valued funds so after a lot of reasearch I ended up buying a shed load of shares in Sirius minerals and after 9 weeks I'm on a 70% paper gain so I'm quite happy about the move and now I just sit back and enjoy rather than having to monitor on a daily basis loads of loans
so to sum up there are things out there appart from P2p and over valued funds
but as a disclaimer I'm not recommending anyone does what I have done DYOR before you invest in anything
and good luck to anyone that stays put
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Post by martin44 on Jun 6, 2017 23:10:29 GMT
I can finally say that I'm not leaving lendy I have now left 98% just 2k left in one loan on sale so that best part of 100k out i done it nice and quiet no screaming and shouting about the sm like many have and are still doing and to be fair that is the main reason imo that the sm is the way it is becouse people won't stop going on about it so that was the alarm bell ringing telling me unless I wanted to hold all my loans to term it was time to get out I started the proses just over 2 months ago and I then had the probolem what to do with the money and decided it was not just leaving lendy it was leaving P2p for a safer home I decided no over valued funds so after a lot of reasearch I ended up buying a shed load of shares in Sirius minerals and after 9 weeks I'm on a 70% paper gain so I'm quite happy about the move and now I just sit back and enjoy rather than having to monitor on a daily basis loads of loans so to sum up there are things out there appart from P2p and over valued funds but as a disclaimer I'm not recommending anyone does what I have done DYOR before you invest in anything and good luck to anyone that stays put my bold... Then you should get the shares sold asap...... i would not advise you to sit back on any profits gained through shares. My experience of shares certainly does not equate to 70% profits..... ever.
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Post by onion12 on Jun 6, 2017 23:32:56 GMT
Martin
its not for the faint hearted but I don't see any more risk with the company than I do P2p
and many people have taken profit on the way up but there are many more that want to see the project through and get rewarded for doing so
i will be top slicing in the future to de risk by 25% but fully intend holding through the next 5 years for all the good bad and ugly
only time will tell
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littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,045
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Post by littleoldlady on Jun 7, 2017 7:18:09 GMT
The difficulty with shares is they either go up or down and either way you have a problem. My solution to the "gone up" problem is to periodically cash in some share to take your original holding, in cash terms, back to how it started. Then you are relatively well placed whether they continue going up or go down. JMO.
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r00lish67
Member of DD Central
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Post by r00lish67 on Jun 7, 2017 8:28:26 GMT
The difficulty with shares is they either go up or down and either way you have a problem. My solution to the "gone up" problem is to periodically cash in some share to take your original holding, in cash terms, back to how it started. Then you are relatively well placed whether they continue going up or go down. JMO. Exactly what I just did the last month or so, I think it's a nice psychological trick to make you feel better whether they go up or down, don't go the whole hog but at least realise some of the gain. Of course if I had just stayed fully invested, I'd be up even further now :-) I academically totally buy into the passive mindset of just continuing to invest, but in practice I just can't bring myself to buy based on current valuations. hmm we've gone off topic haven't we. Well, to bring us back on - I left Lendy because of their updates on the Gloucs loans, withdrew in January and sat moping by the sidelines for a few months. Not feeling bad about the decision now though i have to say.
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kaya
Member of DD Central
Posts: 1,150
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Post by kaya on Jun 7, 2017 8:35:59 GMT
The cynical part of me whispers: The whole system is rubbish. And, yes, the whole system, I mean not just Lendy or P2P. NHS. Education. Police. Politicians. Banks, stock markets, etc. Morals. Or in one word, civilization. ...which is based on material 'progress' and requires never-ending 'economic growth', and is therefore rooted in the ruthless exploitation of 'resources' - of both people and nature.
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hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
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Post by hazellend on Jun 7, 2017 8:57:05 GMT
The arguments about leaving LY or the entire P2P market are fine, but where else is there to go. - UK Equities - Corbyn might just get in or Brexit turns out to be as bad as the remoaners claim or the cycle just turns - I am unhappy to invest further in the Uk Market.
US Equities - so overvalued there must be a crash coming
Global Equities - will be hit by a major US crash.
Bonds anywhere - The story that equities going down = bonds going up - never seems to work in practice.
Savings - virtually all returns have a negative real return.
If I could see a good place to go, I would consider shifting out of P2P, but I can't I think in these days there is nowhere to put your "savings" and sit back and watch them grow. You have to be prepared to move your cash around on a regular basis because market sentiment can change so quickly. I was quite late coming to P2P ie about 2 years ago, and was happy up to about 6 months ago. But goal posts keep moving.......usually not favourably. I think I will gradually reduce funds in this area......and increase my investment on the stockmarket, aiming to deal on a daily basis, selling at the closing bell every day......long term investments seem to be a thing of the past, unless you are an expert in some area of collectables eg fine art, antiques etc. If you want to lose a lot of money then go ahead with that stock market strategy! Stay away from stocks unless you are investing longterm 10 years +
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