I appreciate your skepticism, I’m skeptic by nature myself. That’s why I wanted to see for myself, visited the platforms and asked all the questions I wanted to ask.
I would advise you to do the same; visit some of the platforms, ask all the questions you want and see what they’re doing yourself. Come back afterwards and share your experience with us. We could all benefit from a fresh set of eyes looking at the same thing.
And yes, I honestly believe that the platforms I invested in will continue to work in a way that benefits everyone involved - borrowers and investors alike. If some of them cannot make a profitable business I also believe they will fold in an orderly fashion. If I didn’t believe that, I wouldn’t invest a single cent with them.
If I were to visit all the companies I invest in, I’d me on my third circle around the world by now :-).
P2P loan market simply cannot continue to keep growing forever. Two possible outcomes are decreasing yields, to the point of being uninteresting to investors (= capital withdrawal) OR taking incrased risks (which could triger a flood of bankrupcies on the slightest tilt in economy). Both could lead to implosion of this market, despite the best intentions of Loan Originators you’ve chosen to invest with.
To top this off, I believe you are teaching bad practices to investors. OK,. you also have real estate, but otherwise your capital is all allocated in a single security group which works for as long as it works.
I also have some play money at Mintos, but I’d have to be insane to go all-in on this.
I agree, the referral program that Mintos and other platforms are offering is different from typical MLM. I dislike the typical MLM that has several levels of referrals, which benefits those in the top. In P2P referral programs all participants benefit equally.
You don’t have to visit all, just try to visit the one you’re most skeptic about. Your point of view will be interesting to all of us.
I agree with your two scenarios and I believe interest rates will drop over time. The question is how low it will go until the majority will think it’s uninteresting. Most people have excess money in their bank accounts at 0% interest.
A lot of people go all in have 100% of their assets in stocks. That’s also a single group, although that asset class has been around for centuries. More than 50% of all people loose money on stocks, that’s also a fact. Who knows which is better? Only time can tell…
The point of my blog is only to show what I do and what works for me. I never had success with stocks or ETF’s so I’m not going to invest in that anymore.
There’s plenty of bloggers that specialize in dividend stocks only, real estate only etc. I think people deserve to know that different options exist, what they choose to do with that information is up to them.
Because they are financially illiterate. They are the perfect candidates to fall for risky investments which are made out to look safe (stable, regular income, no volatility, no fees, good liquidity). What can go wrong, right?
I think you are very well aware that the yields you are showing will never again be available to newcomers. You do, however, continue to feed their greed. Who woundn’t like 22% guaranteed returns, right?
You should IMHO leverage your role to educate people not only about what they could win, but also what they could lose.
I don’t know, I find it believable. I guess many people invest during the late bull stage of the cycle and only a few thousand just to try, and then they sell once the crash takes away their gains and starts eating away at their initial contribution. But it’s just a guess.
People often invest in typical retail investor traps, like housing, high TER funds or P2P lending.
And of course stocks which are overvalued. But I would say there is significant less chance to lose money in stocks than elsewhere
I was just wondering yesterday how those chf secured bonds are doing …
Also just last week there was a report on A380 funds which are underwater now. Then you ask yourself why would investors go for such trash investments? And the answer is simple - someone told them the stock market was too dangerous and A380 is something that will surely make money …
WTF. It was about 10 years ago when r friend told me that all airlines combined have lost money since the planes were invented. (deducting all the subsidies). I have no clue if this was or still is true but it doesn’t seem unreasonable.
In the meantime Jorgen lost more than 27k on Kuezal and another 30k€ on Envestio. Well we tried to tell him about the risks, he didn’t listen. But he made so much on referrals that it doesn’t really mater for him if he loses 60k€, as it’s just other peoples money anyway…
Add Monethera and Wisefund to the list. Fastinvest likely also. Easily 100k+ of Jorgens portfolio, but still a drop in the sea of cash he made in referrals. I guess his readers are not that lucky.
Hell yeah. But lets diversify across 20 p2p platforms, so if one goes belly up or is found to be a referral ponzi…
I’d write LOL here if it were a funny subject.
All I have invested in p2p is CHF 300 in crowd4cash and a loan to a friend of mine. But i hate fixed-income for tax reasons.
As far as I know, he just FIREd trusting this income stream. It would be a good case study: If you are pulling the plug at least make sure your assets are well diversified and allocated to last for 30-40 years.
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