Hundreds of emails over the last week the general theme running through them is fear.
The biggest single factor effecting the market is the global economic uncertainty in Europe and the USA. Italy and Spain are now being dragged into the fiscal uncertainty that has claimed Portugal,Eire,Greece and Iceland. This is having a direct detrimental effect on the financial markets COUPLED with the political posturing in the USA REGARDING THE RAISING OF THE DEBT CEILING which has spooked the Global economy. Banks Oilers,Miners,Retailers,Construction etc are all taking a terrible pounding. Lloyd’s has lost over 50% of its value since this time last year. Track the Banks which should give you an idea of where the market has or is going over the short term. It’s up to each and every investor to decide on their strategy but rest assured nothing lasts forever eventually this nose bleed will stop. Remember there are some terrific deals out there. Petroneft and (just announced a discovery that is far higher than first thought yet they are still trading below 37p!) Range Resources to name but two. This is why day-trading is fraught with danger and why Investing using fundamentals as a base is far superior. Fundamentally sound companys will always bounce back while day-trading on a whim or a rumour can and very often leaves you caught with your pants down!