I get a feeling - just a feeling - that the markets are beginning to get to some sort of stability.
Probably wrong.
PS
A friend tells me he thinks the same. The markets have discounted how awful 2009 is going to be, but interest rates here will soon be in the lovely Winchester Whisperer's ZIRP zone.
So looking forward, FTSE in the 4000 region is a strong BUY.
PPS
Don't think the crunch is having much of an effect on Romania.When we started we were paying about Eur 500-600 per hectare - that was about 20 months ago. Admittedly for a very good bit of land, we've just paid the equivalent of Eur 2000 per Ha. And sheep prices are up....
3 comments:
Good luck KL
Genuine question (can't be bothered to check at 1:15 am).... How did the Nikkei perform when Japan was in the ZIRP? And yes, I'm sure there are lots of specific, ridiculously discounted stocks out there, but that's a very broad, sweeping statement Mr. King.
Mr.Fact - Japan went nowhere after the initial crash down from ( I think) 36,000 odd down to 12,000 odd.It didn't start to recover until early 2007 - and then has got smashed again in the last 6 months. BUT - and here's the point - they didn't spray so much cash around as now, and not at the same time as the cuts, which probably take 9-12 months to work through. That's why holding the rates higher for so long has been so damaging, and the BofE could easily have drained liquidity if things overheated.
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