Friday, November 14, 2008


Just a little thought that hit me. Look at this diagram, showing the yield for 10years American government bond; It is right now the lowest ever, meaning investors still are trying to escape investments involving any risk, such as stocks, to safer treasury notes. Many people say the bond investors are the world’s most competent investors, and to follow their investment strategies is wise.

We need to see a change in these investment strategy-patterns, in order to achieve a sustainable upturn in the stock market. The confidence does not exist in the more risky stock market as long as the investors choose government bonds. So when is it time to start investing in the stock market again? It will need a boost of capital in order to gain volume. So what will it take to persuade investors to change investment strategy? An upturn in this financial crisis would probably be the answer to that question, however when will that be? That’s a question with an answer we can only speculate about.

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