I am bullish, so should you!
With the latest debacle of Citigroup,RBS,AIG etc. being pseudo-nationalised and loads of bad news from companies around the world, the stock market has hit rock bottom.
I believe that we should see some improvement in results by the end of FY09 as results were too awful in 4Q08.
However, don’t expect the economy to behave like the past few years, we are gonna see sub-par performance from the economy.
But, so long protectionism doesn’t break out in full, i think the worst is behind us. Stock market discounts the future,so any slight improvement in companies results should lead to a rise in prices, but don’t expect them to reach the heights of last bull market.
Invest in cheap,good and healthy companies, hold for the long haul, you will be richly rewarded in 5 to 10 years time.
Entry filed under: Investing.