Cash is King
January 26th 2008 02:23
As long as the interest rate is higher than the inflation rate or simply, a positive real rate, shifting your investments into income assets such as term deposits would be a wise move, if the markets and the US economy dive further south, which is likely to be the case.
It was not surprising to see the market rebound on Thursday and Friday as many played the mind game of guessing that others will see a 'buying opportunity' after big fall over the weeks, as a chance to buy cheap stocks, shoot it up and unload them fast. The herd got it pretty well together this time.
But don't be fooled by it as it all could be a very short illusion before everything tumbles again. A slip of bad news concerning the US economy will send markets around the world down. The paranoia is prevalent.
It could be a very rough ride until middle of this year when perhaps we could see some quality play. But until then, enjoy a barby and read all about the Rogue Trader of 2000s. This time it is not the British but French.
Let's all chill out during the long Australia Day weekend. Take a chill pill.
It was not surprising to see the market rebound on Thursday and Friday as many played the mind game of guessing that others will see a 'buying opportunity' after big fall over the weeks, as a chance to buy cheap stocks, shoot it up and unload them fast. The herd got it pretty well together this time.
But don't be fooled by it as it all could be a very short illusion before everything tumbles again. A slip of bad news concerning the US economy will send markets around the world down. The paranoia is prevalent.
It could be a very rough ride until middle of this year when perhaps we could see some quality play. But until then, enjoy a barby and read all about the Rogue Trader of 2000s. This time it is not the British but French.
Let's all chill out during the long Australia Day weekend. Take a chill pill.
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