Profiting In Our World’s Markets
Todays economy is a wild one, that much is for sure. When the markets go in an uptrend for that many years it doesn’t take a degree in finance to predict that there may be some financial difficulties on the horizon. To be truthful things wouldn’t have been so great for this past decade or two had it not been for the over anxiousness by the banks to give away money to people with no business having it. It could be worse than it is now. Everyone knows the markets are built on theory (as in there are a lot of numbers not necassaryily backed by a lot of real stuff) and the stuff that took the worst beating in recent times was the shakiest of all.
Also, really you know the people major affected by the credit crunch were the people who had no business getting credit and the people who lied on their applications. What is too bad is that fact that people who followed all the rules and did everything right will pay more for their mortgages in the end. Those who followed the rules are the people who the US government should be concerned with saving. I guess they are sort of the ones being saved, since the government introducing liquidity into the markets should keep mortgage rates lower, even if they aren’t low. It is probably around their natural levels.
So the real question is where are the markets going? How cold anyone know for a fact. From the finance books I have read, and the info I’m getting from my stock trading software they are going to be going down for a while. I heard a guy talking on the radio the other day, and read in some statistics in an online article that the economy was going to be near or in recession for the next 2 years and then should recover until 2010. I know that seems a long time away right now. For the next period, until the economy flattens out, I would suggest looking to safe places like government bonds. Try to stay away from shaky investments.
