After a series of forceful and panic selling and followed by a panic buying, we all know that the market is in a very volatile mood. Despite world leaders trying their means and ways to help the market and economy to recover, the financial woes just got really bleak. The news however, in my opinion had becoming more and more like a catalyst which would be able to spark buying and chasing after stock prices.
Those who are on the side lines are jumping in from time to time during the seemingly market recovery points. However, the real recovery are not in sight. Based on the bear run period, there are still weeks to go before the bear starting to be exhausted. However, short term recovery is likely and possible. Overall economy recovery is just a matter of time. Market and stock prices tread on a business cycle. What goes up, comes down and vice-versa.
On 20 October 2008, Dow Jones Industrial Average Index, DJI was seen on the green side of things, being up by 148.70 or 1.68 perecent during the time of this post. The positivity is sparked by credit recovery hope after government’s measure to save the financial system. An evident to that is the bank to bank lending rates are easing further.
Although not on a rapid basis, but the overall selling pressure seems to have eased somewhat and renewal interest are building up as there are more up side potential with these battered down share prices in markets all over the world.
In my opinion, this will definitely be the best time to buy in some for keeps and for long term investment.
The above are of personal opinion and not at all an inducement to trade.