Will a housing crash be good for trading?

[theEdge]

If the housing market crashed, would buy-to-let investors withdraw their cash from housing, and start pursuing non-sophisticated equity strategies (i.e. hit the bid/ask and increase opportunities for day traders) ????

Was just wondering as vol is down and I'm very bored waiting for the next opportunity.

 

[TWI]

Probably a bit much to expect all the buy-to-let grannies and grandads to suddenly mutate into rabid equity scalpers.
Maybe they will all move into the meat markets.

 

[theEdge]

Probably a bit much to expect all the buy-to-let grannies and grandads to suddenly mutate into rabid equity scalpers.
Maybe they will all move into the meat markets.

Investing in brothels and strip joints?

 

[anley]

90% of buy to let investors won't sell (if property starts to weaken) because they'll all be waiting for an uptick. ie, if prices were 100 yesterday and 99 today they'll wait till they can sell for 100 again. Then tomorrow when prices are 98 they'll hold out for 99, then prices go to 97 so they'll sell at 98 when the market moves back up which of course it won't.

So many of them who've borrowed too much money and got into the game far too late will be forced to sell at the bottom of the market wherever that may be.

In answer to your question - speculation in other assets will be the last thing on their minds.......