A & C weren't you disparaging listening to financial journalists just some hours ago? To quote you:
As we all know the standard of reporting in the papers on aviation matters is appauling[sic] so why should the standard of reporting on financial issues be any different ?
Time to get some opinion from another sorce[sic]?............ I think so!!
But if you want to trade headlines from tomorrows press I'll counter with The Telegraph:
UK house prices will fall almost 20pc in next two years
By Angela Monaghan
Last Updated: 11:34am BST 25/04/2008
http://tinyurl.com/693xge
UK house prices will fall by almost 20pc over the next two years, according to analysts at Capital Economics. The economics consultancy has slashed its forecasts for UK prices and now expects them to fall 8pc this year and 10pc in 2009, down from its original expectation of a 5pc fall in 2008...
If there is
one graph I could ask you all to spend just 30 seconds looking at and considering it would be this one:
You see clearly here that the sequence of events is thus. A big increase in the ratio of earnings to house prices. Then there is a correction. This correction brings on a recession. The steepness of the rise in house price to earnings ratios roughly correlates with the length of the recession.
Now look where we are today. The average house price is at 7 times average earnings (much higher than the USA and anywhere else). House prices have fallen for 6 months in a row (and are accelerating). What bit comes next based on the graph above? Starts with an R.
I'm trying to paint with a slightly broader brush in this debate. There's not a great deal of point in getting hung up on this months stock rally/slump or this weeks job losses/gains etc etc. But Wannabes need to be able to stand back and survey the horizon.
I believe firmly that this time will be no different to the last times and that the last times are clearly illustrated in the graph above.
If this is true then Wannabes need to carefully plan in order to prosper. Which is what we all want at the end of the day..
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