Market Turmoil 'could last for years'

[Hill Farmer]

I know, not the sort of subject heading you all want to read, just before your Sunday roast. But, this is the headline in today's Sunday Times Money section. One or two brokers reckon that we are moving into a 'new investment age' characterised by lower returns. Goldman Sachs reckon that '..demographic patterns would have a serious effect on share prices which could triger the longest bear market in history'. Right, where's my mattress then , better stuff what's left in there.

 

[Max Damage]

Must be nearing the bear market end then. I simply cannot believe that at all with economies strong and despite the gloom on recession Interest rates, infaltion, unemployment etc are nowhere near previous recessionary levels.

The papers are as full of bear stories now as they were bull stories 12 months ago

 

[Hill Farmer]

...so it's all a load of unbearable bull***t!

 

[Riz]

amazing...

It'll be amazing to see how soon they start looking at the markets the other way round...once they realize they've corrected what they had overhyped themselves...no doubt that this doom and gloom sentiment will change at some point...till then watch out and have some cash available for the killing..

good luck

rizgar

 

[shelman]

Spot on Riz...when this ends ,all will be forgotten, until the next time etc etc.
How else can smart money make more and more and more.
Lets make sure we get our slice of the cake
S

 

[Hill Farmer]

Re: amazing...

I agree with all of this. However, what is really needed is some postive catalyst/factor that will signal a turnaround. At the moment, bad news seems to have more impact than good news. The question is, what will it take to change sentiment?

 

[shelman]

Greed, Hill, greed.

 

[Hill Farmer]

I think that's the key Shelman. This is where behavioural finance can offer some explanation. Momemtum driven by a crowd psychology, in this case greed. Roll on positive crowd psychology, where are all the (greedy) optimists?

 

[Uncle]

Me greedy, but the dish doesnt look very appetising.

John

 

[Riz]

source of greed...

Looks like our greed is not enough..the American greed is fierce..that's waht we need.. )

rizgar

 

[shelman]

We've got to be patient. April, statistically, is the second best month in the UK, after January, for a rise in the indices. February is usually bad. ( based on the average between 1965/1999 FTSE )
This year could be different...i don't think so...there must be a mountain of fund money out there waiting for the first real positive sign.
Greed is not an individual aspiration, indeed, the worst are the institutions and they are not going to be satisfied with paltry cash returns for too long.
For what it's worth that's my opinion.
Good luck everybody