How do you remember the GFC?

[Julia]

Was all a bit of a blur to me. At the time I was found to have aggressive prostate cancer and had the worst operation and time of my life. Very much better thanks and rid of it now.

Glad to know the health scare is in the past, Explod.

The thing that has stuck is my search for the fundamantal reasons for it and a belief that we are in deeper than we were before it occurred.

I agree about this, but don't underestimate the capacity of governments and central banks to continue papering it over and investors to be further sucked in.

I eventually hope to be in property and fixed interest/cash investments in a few years time and in the mean time I am still buying those dips. Sorry for the long winded answer.

On the contrary, Bill, it's an interesting story and the detail is much appreciated.
Thank you.

 

[konkon]

It was period where elite groups got further ahead of middle classes and totally screwed them (us) over with more future debt obligations. Yet another period in history of a transfer of wealth from middle to upper classes. Not so drastic here in Australia, but really clear in the northern hemisphere.

 

[IFocus]

Was all a bit of a blur to me. At the time I was found to have aggressive prostate cancer and had the worst operation and time of my life. Very much better thanks and rid of it now.

Good work Explod friend went though the same glad you are still with us at least you wont have to get the physical exam each year any more

BTW how did it get picked up?

 

[Tyler Durden]

Allow me to pose this question: assuming you invest for dividends, and the dividends remain unchanged throughout the GFC - would it be stupid to keep them?

 

[So_Cynical]

Allow me to pose this question: assuming you invest for dividends, and the dividends remain unchanged throughout the GFC - would it be stupid to keep them?

Fair to say almost all dividends fell during the GFC, some held there ground, others disappeared all together....maybe 50% or more of the top 500 stocks had to take some measures to hang on to capital, div reinvestment plan, dividend suspension, changing the div ratio pay out rate, cap raising, SSP, placements etc....too many company's got caught with debt levels of over 50%

 

[Bill M]

Allow me to pose this question: assuming you invest for dividends, and the dividends remain unchanged throughout the GFC - would it be stupid to keep them?

Put it this way, the dividends did drop and in my case they took a good 30% hiding. That was as bad as the depression by the way. The problem was that dividends lag after the fact. By that I mean by the time you felt the drops the capital destruction was done.

To answer you question about dividends being the same and would it be stupid to keep them, depends on the individual. I am a long term dividend income investor and yet I still sold one third of my portfolio, if I didn't I would be worse off now. If you were sure the dividends wouldn't go down I most probably would have held but they didn't so somethings had to go.

Tyler, your questions are very thought provoking and the events of the GFC are fresh in my mind. Be prepared, get ready to do what you have to do in case it comes along again, cheers.

 

[Bill M]

too many company's got caught with debt levels of over 50%

That's right. I had a property trust that was geared around 65%. When it came to refinancing the banks wouldn't loan them the money. The dividends were cut to zero and they put out a SPP. They had a written agreement for funding but in the end it meant nothing, the shareholders saved their ar$e.

 

[Uncle Festivus]

When did it end?

 

[banco]

I got out relatively unscathed but I was convinced we were looking at a lost decade Japan type situation so took too long to get back in and missed the first part of the rebouond.

 

[nulla nulla]

It was period where elite groups got further ahead of middle classes and totally screwed them (us) over with more future debt obligations. Yet another period in history of a transfer of wealth from middle to upper classes. Not so drastic here in Australia, but really clear in the northern hemisphere.

After they sold the rest of the world the ninja cdo's, the American Merchant Banks & Hedge funds made a fortune shorting the world markets to their nadir, then made a further fortune pushing the prices up again, setting up the current bubble. Gotta love free enterprise backed up by U.S Governments and QE1, QE2 & QE3.

When this bubble pops, its going to be a doozy.