Landmark’s Blog
Moving sideways
Published on 17th June, 2009 at 11:59 by Eric Mowinski.
After an explosive increase in market valuations, the major indices seem to be moving sideways and this could continue for some months.
In general terms, the major market indices in the US and Western Europe have risen by around 40% since March of this year. Whilst this recovery is making us feel a little calmer and providing some encouragement, it doesn’t solve the problem of looking at our valuations which still show negative figures.
The reason is we are still 40% under highs set in October 2007. So whilst there seems to be some progress, it only improves the losses which we are still holding.
As you know, I believe 2009 into 2010 will be positive for equity markets because the recent lows were over reactions and the fiscal stimulus pumped in by the UK and US Governments has to have some positive effect albeit relatively short lived.
The stockmarket is currently moving sideways as if it is taking a breather from the significant upward movement. This may well continue for weeks or months. It doesn’t help our frustration in dealing with the reductions in values since October 2007 but it may be a necessary phase in the short term upward movement.
Posted under the following tags: stockmarket, equities, forecast.
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