Quote Originally Posted by BIRMANBOY View Post
So where is the "strategy" in P2P "investment"? Most investors have some sort of strategy when they invest...and in fact the thread where this sitting is called "Investment Strategies". How can you align lending money to individuals with a strategy? There is no strategy, no intellectual involvement, no examination of company performance and prospects....just an examination? of likelihood that joe borrower will pay back his loan.
I think, in a balanced portfolio it fills a risky place. I think there is probably more thought that goes into the decision to invest in a P2P than would go with the decision to invest in a Big Bank term deposit or even perhaps even in a company bond issue. Maybe there is thought that goes into deciding which P2P and from thereon reliance is placed on the P2P company's assesment of grade of loan. (Just as you rely on the Big Bank's assessment on how they deploy the funds provided by your term deposit).