Hands up john ......I recommended eurobank at 11c.......but lets be fair ,I recommended it as a punt(gamble) not an investment(investments have returns)....... and unlike gambling on the gigi`s ,this horse is still on turf and the race isn't over!!
My reason for the punt was I didn't believe Greece would leave the euro.(the haven't but it didn't uplift the stock market, sadly)
what happens to europe in the morning depends on how China reacts tonight. There has to be an issue of honour and saving face involved so you would have to expect the kitchen sink to be thrown at this. Having every investor in the world pointing the finger at you won't sit well with their culture. Question is, even if they raid the state pension pot and throw it into the stock market, what happens then and will it be enough?
there are real opportunities now in good safe companies but as always, calling the bottom is only possible in hindsight. I see our friends over in Eurobank are a bargain at 3c, mind you some called them at a good investment at 12c. Ouch.
Just reading myself in and value very much the contributions of our special correspondents in this instance the boys that I have highlighted.
The current situation in China is not a surprise and is one that I have long expected as America and Europe progressively abandon their policy of pushing their employment offshore in favour of restoring jobs "AT HOME" and as a reaction to China's scant respect for patents.
That this policy may cause unrest in China was I am sure considered when the new initiatives were first enacted.
That the markets have taken advantage of the situation should not surprise anyone - that's what they do - it also creates new buying opportunities bring as it does more money into the markets.
It should also be remembered how soft the bond markets had become as people reacted pretty much like me by selling their holdings when they produced such poor returns. Investing in more and more Super Markets in order to produce lots of unskilled and part time jobs in the so called "service sector" could only work for a while.
Now when the markets want a supply of funds I rather suspect that they will have to pay something to the poor long suffering savers who have put up with .0001% interest for far too long whilst the profits - when there were any -vanished in all those wonderful bonuses.
What amazes me is just how long they were able to get away with it - when interest rates rise we will have another problem, many of these ridiculously leveraged companies will either have to be re-structured or fold under the weight of their debt.
Interesting times, Interesting times - the young masters of the universe and bankers will have to start getting involved with new ideas that are capable of growing the economy by creating employment that pays better than the minimum wage - unless you work in the city.
Their performance over the last fifteen to twenty years does not inspire confidence when you look at a lot of the employment that has been created and the way that phone bank methods or large scale distribution works. The jobs that were sacrificed and the skills that were put to loss make you wonder about the markets capacity to recognise and understand real opportunities when they arise, which are the result of research and development where this still takes place.
We will get out of this difficulty - the question is when.
Good luck all. E and OE excepted because I have not read this through as I should.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.