Friday, 6 June 2008

Finance and Investments

Investors be worried...The next 12 months will provide you with the best returns you are likely to get for some years.

A study of the last eight US recessions shows the US sharemarket (Which is still closely correlated with other world markets) hit their lowest points 3 – 6 months before the economy dips to its lowest ebb.

One commentator suggested the markets should start to recover around June – markets tend to recover before recessions end and, once the recovery begins, for the following 12 months you will get better returns than for the next few years. Remember greed and fear? We are about to swing back to greed.

Staying out of the share markets is a bigger risk than staying in. Oh – and the property market? Not a lot of relief – further drops are likely with a period of stagnant growth until around 2010-2011 seems likely.