"Even a stopped clock is right twice a day."
On fall of the markets...
excerpts from an article..
<<Hordes of posters have been forecasting a slide for the past two years, saying prices were too high - and have yet to be proved correct. It is a stock market truism that anyone can forecast a collapse and eventually they will be proved right. Schwarz put it, "Even a stopped clock is right twice a day." >> Express
<<Alarm bells may also be ringing over the uncanny -some would say ominous - similarity between Wall Street's surge in recent years and the period before the Great Crash of 1929. That triggered the worst depression the world has ever known - one so deep it was not until after the war that Western economies recovered. The other unlikely similarity with 1929 was the surge in radio shares. The new fad won an instant market following, despite many of the stocks having failed to make a profit - just like Internet shares today. Stock market historian David Schwarz agrees with Galley on how the wind is blowing. "The market is vastly overvalued at the moment - we're in a bubble phase and the next big move will be down," he predicts. But he adds that saying when and by how much is altogether more tricky.>>
SO what to do with your cash..
<<But for investors who want to know what to do with their cash, it is scant use being told a downturn is just around the corner only to find that the market continues to go up strongly for the next two years. Precisely this mistake was made by fund managers PDFM and its chief Tony Dye, who decided to reduce holdings in stocks and shares in favour of cash, on the view the market could not sustain these values. Inevitably, PDFM's performance has trailed the more daring fund managers.
But, for private investors, the most sensible tack must be to adopt a long-term strategy: invest in sensible blue chip companies and hold them for long-term growth.
Sure, there will be falls, but in the swings and roundabouts of investing, gains should outweigh declines over time. >> |
