Since Vikram Pandit's comments on the 10th of March 2009, the markets have seen something of a small turnaround, confidence is returning, or at least in the eyes of an amateur (me). Many major analysis's also say they see the beginning of the end of the global recessions, even though these may be words which may bring much joy to Average Joe's all around the world, it must be noted that recessions take much longer to expire then they do to show their true colours. Are we past the worst of it... well we will only be able to tell with hindsight in around twenty years time.
For the investor who believes risk is something that comes with the game, their risk has either paid great dividends or has left them worrying how they are going to pay the rest of their mortgage. It's easy for anyone on the outside of a boxing ring to suggest tips on how to use intellect to earn true profits from a raging bull, but when your livelihood depends on it, I'm sure its a different situation.
Watching Barclays go from around the 50p a share mark to 300p per share over a matter of weeks, it is obvious that many investors must have made a killing, but I fear by the time the little man gets into the game the markets will realize that they are overvalued and everything will head south...
My advise... there's obviously money to be made, but playing it safe will surely pay off in the long run.... think dividends!!! have a look at stocks which have fallen due to the recession, not stocks which may have helped the recession along the way.
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