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Great Financial Fortunes will be made very soon in stock market.BY: Keiran Travers | Category: Business and Finance | Post Date: 2008-11-29
Buy low and sell high - it's a familiar investor catch-cry. Great fortunes will be made from this stock market downturn. Great fortunes! The market is low and may go even lower in the coming months. However, imagine pruchasing cheap stock today and leaving it for 5 years, yes 5 years. There will be surely growth and you will have made good money. That is the key - thinking long term. Such a strategy also needs an exit strategy in that once you have reached your desired goal then it would be prudent to place your riskier investment in say a term deposit account. For instance say invest $100,000 today in managed funds (such as those found on my website www.karmafinancialresearch.com) it would be a good idea to say exit the market when you have achieved your goal of say $200,000. I believe the lesson we have learnt from this market crash is there is a need to exit at the right time and that the market will not simply grow forever. Nonetheless, there is a lesson that we can successfully learn now but investing in good quality stock. If the past downturns are anything to judge the future, the market will soon return to a slow recovery. Whilst the general feeling amongst many investors that the financial bloodbath of 2008 has taken a huge monetary toll, there are many investor seeing the market opportunity. This market opportunity is being swallowed by the notion of fear. The fear is that markets may go even lower and there will be more bloodletting. However, there are several indicators that this is false. Firstly I believe that the market is swallowed by fear by the fact that in this downturn there is a greater proportion of the population are now investors. Private share ownership has increased greatly over the past 10-15 years through superannuation and individual share ownership as well as investing in funds. Many baby boomers have a share portfolio where as their parents never even imagined having part ownership in a company. Previous meltdowns of the say, the early 1970s, affected a far less proportion of the population. As a result, the fear amongst the general community if far more widespread and the fear have spread like wild fire. However, there are many ingredients to say that better times are ahead. Firstly, as I stated in many other articles, interest rates are low and getting lower. This both indicates that the cost of borrowing is low and that the real fear of any recession, inflation is low. The cost of housing has lowered but not crashed as predicted by University Professor Steve Keen who has predicted house values will fall by 40% in Australia. By the softening of house prices (rather than a crash) this is giving the opinion that buyers believe that they may be able to secure a bargain whilst homeowners feel that the key asset is still relatively robust. Furthermore, despite media reports the average family has a little more disposable cash each week due to combined effect of the lowering of mortgage rates and decreasing cost of fuel. This extra cash if spent will ensure growth in the economy. I have noticed that many esteemed commentators from companies such as UBS and Pricewaterhouse Coopers have indicated the many extremely wealthy investors made serious money in down times. Those who are not heavily geared at present have the greatest avenue for investing success. Will you be making your fortune. Article Source: http://www.saching.com About Author / Additional Info: Keiran Travers is an avid funds and property investor from Brisbane Australia - he has an a company Karma Financial Research. Additional Articles: * Human relations at work in schools | Education : By S.Pen * Women healthcare - Components of fitness and health in women * PROMOTE DOMESTIC TOURISM * My academic journey so far ... * Washing Down Comforters - Be Careful! Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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