Have The Stock Markets Bottomed Out?
The main stock markets from around the world have had quite a good start to the year. I have to say that this, in my opinion, is quite a surprise as the overall economy is still in dire straits – it was only a couple of months ago that General Motors went into administration for example. I have been asked on many occasions over the last couple of weeks whether these stock markets will continue the good run for the rest of the year.
Now I have to say that I am more than happy that the main stock markets from around the world have been performing so well. I love to invest on the markets, or gamble as my family like to call it.
I should mention however at this stage that I am not a financial adviser and that I am merely a novice investor who is hoping that the "gamble" will pay off. Please therefore do not take any of what you read in this article as financial advice as I am not authorised to give advice etc. I actually work on various projects including offering a stop stammering course, DVD authoring and also assisting a group of cost reduction experts.
Investors are hoping to see some green sheets of recovery and are eager to enter the market at the right time; or at "the bottom" as they call it. I am not sure about you but I certainly have not seen any green shoots so far!
Over the last few months we have seen some dramatic gains on more of a hope that the recovery has started. So just how will the markets react when it sees some "real evidence" that the credit crunch is starting to ease? Well they should, in my humble opinion, have a major rally. With interest rates at historical lows people are seeking an investment which offers a much greater return than the measly three percent offered on the high street.
I personally believe that there are going to be some rocky roads ahead but that the bottom of the market may have been reached.
Tags: Credit Crunch, green shoots, interest rates, interest rates at historical lows, novice investor, stock markets