11-04-2020, 11:09 AM
It would appear to my untrained eye that both investors and P2P companies are finding out the hard way why retail investors are not a good source of funding in times of economic downturn.
1. Most P2P companies appear to be experiencing a "Run" on invested funds which they are now having to throttle back returns in order to survive.
2. Most retail investors believe their money should be available to them just like in a current account.
I am now out of most P2P platforms (With the exception of bad debt: FC= <£200, LY=<£2500) and I am only actively investing in one platform (For those that can't guess, UB).
I do not see companies like RS, AC or Zopa coming out of this very well, if at all.
I would say that overall I have about broken even with my little P2P experiment, mainly due to the fact that I was late to the party (Late 2017). I am sure there are many of you that have made a great deal of money from P2P but my gut feeling is that the end of the road is coming and it is going to produce a great number of casualties.
1. Most P2P companies appear to be experiencing a "Run" on invested funds which they are now having to throttle back returns in order to survive.
2. Most retail investors believe their money should be available to them just like in a current account.
I am now out of most P2P platforms (With the exception of bad debt: FC= <£200, LY=<£2500) and I am only actively investing in one platform (For those that can't guess, UB).
I do not see companies like RS, AC or Zopa coming out of this very well, if at all.
I would say that overall I have about broken even with my little P2P experiment, mainly due to the fact that I was late to the party (Late 2017). I am sure there are many of you that have made a great deal of money from P2P but my gut feeling is that the end of the road is coming and it is going to produce a great number of casualties.
I'm an engineer by trade, so don't normally have money. If you lose any money because you listened to something I have said, more fool you!!