Here is a good article for its coverage of the European
banking market. Ouch! I had no idea that the Eurozone was so profligate in its lending to the Eastern Bloc. I'd have thought they would have funded there development from petrodollars. But I guess with the collapse in dollars a lot of those loans will turn bad. Having said that. European banks might be expected to end up controlling valuable oilfields in the Eastern Bloc, to the extent that they are funding oilfield development. But no doubt they were also funding non-energy investments as well, which is where the greatest burden will arise.
Well this crisis never ceases to get deeper. This is the problem when you substitute principles for arbitrary laws. This is how governments undermine the market. This is not a failure of capitalism. Its a failure of government. This was destined to happen. It could and was foretold a decade ago.
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Andrew Sheldon
www.sheldonthinks.com
Investment Strategy
If you are investing for the long term, you still need an investment strategy. Dont be fooled by the rhetoric of fund managers. The reason they advise you to 'buy & hold' is because they dont want to compete with you in sell-offs. Markets and industrial sectors are cyclical, so they demand trading to get the best returns. Fund managers actually cant hope to match the performance of small investors (if you are half good) because they have to manage huge amounts of funds and charge you a fee besides.
MY ADVICE is (i) look at a range of market indices and decide upon what level of correction would give you the justification you need to get in & out of the market. It might be a 5-10% retracement or a break of trend. (ii) Diversify if you dont have an intimate knowledge of the company or management. More than 30% in one company is aggressive.
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