Articles for: INDU

What motivates you? Is it pain or pleasure? Most people would answer “Pleasure”. Experience shows otherwise. Think of two scenarios for a moment: 1) you make 10,000 in the market 2) you lose 10,000 in the market.

After a shocking week previously, the US market managed to regain some lost ground through to Thursday despite a raft of disappointing economic data results.

Since carving out fresh highs in late October, world markets experienced the first significant correction in around five years, and for many it was a rude awakening.

When I see investors buying into the current market I ask myself, who is doing this buying? Why? Do they know something that I don’t?

It has been a dramatic few weeks on global stock markets. The impact of the credit crunch and years of easy debt, that is simply not available now, is really starting to hit home.

Well much has happened in the last week and if I was writing as I did last week on the mother of all share indices – the DOW – I would probably have taken an even harsher view.

The US markets had an extraordinary move up during the last week or so in anticipation of a 50 point move on interest rates by the Fed.

When you look at a line chart of the DOW or All Ordinaries and ask investors to look back and point to where they would like to have bought in, almost without exception they point to the major retreats that we call ‘pullbacks’.

In the near term the DOW has arrived. There is not a lot more major travel for the time being – up or down – even though you may ‘feel’ the market is a little frenetic and the media/analysts beat it up.

It's been just over five years since the low of October 2002 that marked the end of the bear market in the US.