Where to Invest
Clean Financial - The Financial Spread Betting Website

Where to Invest

Where to Invest


Trading Features / Strategies from Simon Denham of Capital Spreads.

Yesterday I was asked what people should be investing in at the moment. This is a difficult question as investors are supposed to take reasoned decisions over events, as they see them, combined with the future prospects for the actions that they take.

I had to say in all honesty that how can anyone possibly make a long term investment choice on any stock in the current environment? For very long term players with huge income streams I suppose as long as you keep buying all the way down the curve you should pick the bottom at some point. But for ‘Joe Public’ trying to pick a few winners in the murk, what is the point?

The best place for your money, as I have commented since last year, is in cash. I have been getting around 5.7% for my funds for most of this year. A far, far, greater return than virtually all funds except for short play vehicles. My few excursions into equities have cost me dear and sad to say it is difficult to see much change now.


Financial Spreads » "With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." » read Financial Spreads review.

Analysts keep telling us what good value stocks are at the moment with p/e returns at below their median levels. But bear markets normally run until stocks become absurdly cheap not just ‘good value’ and this bear phase is still quite cuddly when compared to some that I have known during my 25 years in the city.

The current environment is one of quick entry decisions and even quicker exits. Only those with vast resources can sit tight when the stakes are so high. Poulson’s aggressive ploy may work but then again it may not. If it does work we can either look forward to several years of very low growth and falling margins (possibly deflation) or, if liquidity does return to the banking sector quickly, the possibility that a $700bn injection (from the US alone) sparks a huge money supply spike and thus a big inflationary bubble. Neither of these is exactly good for equities. If the whole project fails then, unfortunately, more banks will go under and at some point the governments of the western world would be forced into wholesale nationalisation (Scandinavian Style) to protect the assets of the rest of the economy.

Of course these scenarios are worst case, but investors can probably afford to sit out events over the next six months as the chances of missing a huge equity market rally are probably remote.

The above comments do not constitute investment advice and neither Capital Spreads nor Clean Financial accept any responsibility for any use that may be made of them.


Capital Spreads » "With Capital Spreads you get all the normal
advantages of Spread Betting plus..." » read Capital Spreads review.




Risk Warning: Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Article provided / approved by Capital Spreads which is a trading name of London Capital Group Ltd which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 182110.

'Where to Invest' edited by SD, updated 25-Sep-08



Also see:

Trading Features / Strategies Index – an index of all the Trading Features.



Free Financial Email Updates
Q) Average Trading Results?

A) Get free trading tips, offers, price updates, important news and more!
All Free - Click here!


Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.


* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.

Home
Capital Spreads
ETX Capital
Financial Spreads
GFT
IG Index
InterTrader
Spreadex
Spread Betting Tips
1) Daily Trading Tips
2) Financial Tips
3) Financial Tipping
4) Strategies
Spread Betting News
Daily Trading Update
Daily Analysis
Daily Trading Review
Daily Closing Update
Daily Market Data
Live Charts
Live Prices
Trading Videos
Stock Market Spreads
Stock Market Reports
Stock Market Analysis
Stock Market Charts
Stock Market Prices
FTSE 100 Spreads
Dow Jones Spreads
DAX 30 Spreads
Forex Spreads
Forex Reports
Forex Analysis
Forex Charts
Forex Prices
EUR/USD Spreads
GBP/USD Spreads
Commodities Spreads
Commodities Reports
Commodities Analysis
Commodities Charts
Commodities Prices
Gold Spreads
Crude Oil Spreads
Shares Spreads
Share Tips
Share Trading Reports
Share Charts
UK Shares
US Shares
Spread Betting
Bonds Spreads
Interest Rate Spreads
Spread Trading Blog
Financial Fixed Odds
CFD Trading
Trading Features
Trading Forum
Technical Trading
Free Newsletter
Why Spread Bet?
What's Spread Betting?
Glossary - part 1
Glossary - part 2