End of short term rally?
Picking the right shares to profit out of this recession is pretty difficult, if not like chucking a dart at a board blind and hoping to hit the bulls eye – or is it?
Reading the news, most people are thinking “Wow!” – “the banks made a profit, city boys still getting big bonuses and the government is moving money around to encourage buying. Everything is going well, we’ve turned a corner and on we go back to normality……………” or is it?
Think about it – just how many new cars have you seen on the road lately? Fiat 500’s, Nissan Micra’s and other small city cars have been popping up due to the scrap page deal offered on old cars. Isn’t this false economy? Further lending to already cash strapped public with offers of £2000 off new cars that they do not really need?
Big picture? Well, maybe – the banks got us into this mess, they will probably get us out.
But, for sure the market for shares has been roller coastering for a while now. A forum member on iii wrote “The market is never wrong, the market is what it is at the time, it is people who make the market, if someone is willing to pay that price then that is what it is.” How can you argue with that? Goes to show, Lloyds post loss of £4bn, four billion?!? and the share prices goes up 30%!
Just throw the dart, as long as it hits the board you are in the game……….long term.