In the last few weeks, stock markets around the world have been in free-fall, and where they go next nobody really knows. Of course, there are some who say they do, but now is the time to choose your “expert” media inputs very carefully.
Like all great travellers, I have seen more than I remember, and remember more than I have seen.”
Since Christmas, the pound has strengthened against the dollar and other currencies. A pound was worth $1.27 in December, but it was worth $1.33 by the end of February – a rise of 4.5%.
In a recent publication I received from a high-profile broker, the opening article was entitled: ‘You have to be in it to win it’. The conclusion was that if you missed out on the 10 best days in the market over the last 20 years, it would have cost you 3.5% per year, or 166% overall in lost returns.
‘If you want to go fast, go alone; but if you want to go far, go together’ is an appropriate description of investing using momentum as your discipline. You are travelling forward with others in the same direction and with the same ideas for gain, rather than racing ahead alone, only to become isolated in the wrong sector later.
I can fully understand why Donald Trump might be attempting to level up the playing field and reduce the imbalance of trade between America, China, the EU and other nations around the world.
I also can see his reasoning and desire to have these very same nations take their fair share of the funding of the United Nations, NATO, the World Health Organisation, and many other global organisations.
It’s said that there are three things a wise man has to fear: the sea in a storm, a night with no moon and the anger of a gentle man. I would like to add a fourth: the uncontrolled interference and meddling of politicians, bureaucrats and bankers in the world’s economies.
A damaging market correction is looking a distinct possibility; rather than suffer losses building up your cash pile may be better.
Douglas Chadwick of Saltydog Investor sees huge potential as Vietnam’s economy surges ahead, but realises he needs to take a different route in.
Douglas Chadwick worries that a market correction may be on the horizon, so he’s getting out of riskier sectors.