What to do now the Stock Market has crashed.

sirbhp

LE
Book Reviewer
Its only legalised gambling , who knows after this lot people might start buy shares on the ACTUAL worth and prospects of companies rather than inflated paper worth of the shares . With a bit of luck bussiness will go back to making and selling stuff as well .
 
@Portree Kid

The market is up 941 points so far. Any more advice about the financial apocalypse you would care to share??
Congress looks closer to agreeing the $2tn aid package, Dow up over a thousand points and rising at the moment.

Boeing up 70%...
 
Since this thread appears to have slowed down, a sort of vaguely related question.

My fixed rate mortgage period expires next year.

The original plan was to remortgage within the next two years (I've paid off about a sixth of the total debt so far) and use the extra cash to pay back a couple of very long term loans to family members.

I'm now thinking that if interest rates drop and stay low as a result of the coronavirus impact then I might be better off taking a lower interest rate on the original mortgage and just paying back the family debts directly.

Essentially the options are:
remortgage for a higher amount and use the cash to pay off family bets immediately (which in terms of interest will cost me a lot more long term)

negotiate for a new fixed rate period (at a lower interest rate) on the current mortgage amount and pay off family debts directly over a period if they agree

allow the fixed rate period to lapse, let the mortgage go into variable rate (hoping interest rates nosedive over the next few years) on the current mortgage amount and pay off family debts directly over a period if they agree

Any thoughts? While I am not a mong my financial knowledge is pretty limited.

Before anyone kicks off I am not making any decisions based on replies. My local branch doesn't have a mortgage advisor in until 'some time next week, possibly' so any ideas now will save me thinking time later.
 
Since this thread appears to have slowed down, a sort of vaguely related question.

My fixed rate mortgage period expires next year.

The original plan was to remortgage within the next two years (I've paid off about a sixth of the total debt so far) and use the extra cash to pay back a couple of very long term loans to family members.

I'm now thinking that if interest rates drop and stay low as a result of the coronavirus impact then I might be better off taking a lower interest rate on the original mortgage and just paying back the family debts directly.

Essentially the options are:
remortgage for a higher amount and use the cash to pay off family bets immediately (which in terms of interest will cost me a lot more long term)

negotiate for a new fixed rate period (at a lower interest rate) on the current mortgage amount and pay off family debts directly over a period if they agree

allow the fixed rate period to lapse, let the mortgage go into variable rate (hoping interest rates nosedive over the next few years) on the current mortgage amount and pay off family debts directly over a period if they agree

Any thoughts? While I am not a mong my financial knowledge is pretty limited.

Before anyone kicks off I am not making any decisions based on replies. My local branch doesn't have a mortgage advisor in until 'some time next week, possibly' so any ideas now will save me thinking time later.
You will have a long wait for interest rates to nose dive they already have, they probably cannot go any lower the only way is up now - but when who knows

I think that you will find not many Banks or Building Societies will not be talking about mortgages at the moment, after the 2008 crash mortgages were difficult to obtain and the Banks etc would refuse a mortgage on even the most minor issue.

A lot will depend on the amount of equity in your property and I expect they are already factoring in that house prices will be falling

Archie

Archie
 
Last edited:
Since this thread appears to have slowed down, a sort of vaguely related question.

My fixed rate mortgage period expires next year.

The original plan was to remortgage within the next two years (I've paid off about a sixth of the total debt so far) and use the extra cash to pay back a couple of very long term loans to family members.

I'm now thinking that if interest rates drop and stay low as a result of the coronavirus impact then I might be better off taking a lower interest rate on the original mortgage and just paying back the family debts directly.

Essentially the options are:
remortgage for a higher amount and use the cash to pay off family bets immediately (which in terms of interest will cost me a lot more long term)

negotiate for a new fixed rate period (at a lower interest rate) on the current mortgage amount and pay off family debts directly over a period if they agree

allow the fixed rate period to lapse, let the mortgage go into variable rate (hoping interest rates nosedive over the next few years) on the current mortgage amount and pay off family debts directly over a period if they agree

Any thoughts? While I am not a mong my financial knowledge is pretty limited.

Before anyone kicks off I am not making any decisions based on replies. My local branch doesn't have a mortgage advisor in until 'some time next week, possibly' so any ideas now will save me thinking time later.
First things first; whatever decision you take carries a risk. So analyse the risks before making a decision.

Second; you have debt. In general, look for the cheapest place to put that debt.

Third; be cognisant of inflationary risks. The government is writing some very big cheques. If they get it wrong, there could be huge inflationary pressure. Spread your risk; family debt won’t look expensive If mortgage rates climb.
 
You will have a long wait for interest rates to nose dive they already have, they probably cannot go any lower the only way is up now - but when who knows

I think that you will find not many Banks or Building Societies will not be talking about mortgages at the moment, after the 2008 crash mortgages were difficult to obtain and the Banks etc would refuse a mortgage on even the most minor issue.

A lot will depend on the amount of equity in your property and I expect they are already factoring in that house prices will be falling

Archie

Archie
@Bravo_Bravo

OK numbnuts give it a disagree now tell us why

I was just pointed out my experience in trying to get a mortgage in 2009 and my opinion in the interest rate you think it can go lower - please tell us

Archie
 
Been thinking for a while...

I suspect that there will, at some point come s piece of news that the markets really, really like and they will soar.

Top for me would be a sustained fall in the number of new infections, or an existing drug being repurposed, much like Thalidomide has been for leprosy.
 
Been thinking for a while...

I suspect that there will, at some point come s piece of news that the markets really, really like and they will soar.

Top for me would be a sustained fall in the number of new infections, or an existing drug being repurposed, much like Thalidomide has been for leprosy.
Read Napier. We may get a bounce (or bounces) when good news occurs, but, if this is a structural correction, it’s going to be a long time before liquidity returns.
 
Read Napier. We may get a bounce (or bounces) when good news occurs, but, if this is a structural correction, it’s going to be a long time before liquidity returns.
Liquidity is THE issue.
Which is why the markets liked the Fed sticking $2trn of QE out there...
 

Quo_vadis

Clanker
If you are already holding shares, “Do nothing” is good advice - along with, “Look away”. I’ve bought some IAG shares since the drop, but otherwise I haven’t even looked at how individual holdings in my portfolio are doing.

Given that I don’t intend to touch what I’ve invested for another decade, the value today or tomorrow is immaterial.

There are lots of uncertainties at the moment, but some things are pretty certain:

1. This is a temporary (albeit serious) hiatus.
2. Stock markets always recover (they even survived two world wars).
3. People have short memories.
4. People have short memories.
 

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