Finding Investors: Have They Lost their Faith?
Recent comments from some major brokerages suggest that clients have “simply lost confidence in all government, corporate and regulatory agency leaders and have begun to lose faith in the market as an appropriate place for savings”!
Fundamentally they can’t face another 2008. Negativity seems to be the order of the day.
Most indications suggest that the market is oversold right now and opportunities abound. Banks and energy stocks have dropped up to 7% recently and you would have expected at least a bounce from energy due to the limitations placed on drilling in the Gulf and the potential for reduced inventory.
With the $14 trillion overhang in America confusion continues over the continuing strength of the dollar.
Certainly China and others are actively diversifying their currency reserves and moving away from the dollar. In addition OPEC continues to seek an alternative currency denomination for their transactions.
Investors have an eye on increasing their weighting in gold and that brought a new spike earlier this week. However a dollar reversal is certainly on the cards as its appreciation against a number of currencies appears to be provoking the possibility of a significant correction.
It is becoming increasing clear that keeping a “little something” under the mattress may be a prudent choice!
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Posted by PNeedham
on Jun 10 2010. Filed under Featured News, Finance.
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