The deal must go ahead in the USA

This weekend we await the news that they have agreed a deal on the $700 million dollar bailout. Although these events are happening in the USA the world financial system is such that it inevitably has a large impact on us. If it does not go ahead then we will not only see more Banks go to the wall here, but all other business could be starved of cash.

My advice would be not to make any rash financial decisions this week

Where do we go from here?

Markets have edged there way back to near Melt down Monday levels. This was only to be expected, however the unease in the markets seem to be driving prices down further. The dithering that is going on in the US over the rescue plan is having a big impact. If this issue is not resolved happily by Monday trading, then I think we can expect next week to show more losses.

Worried about your investments

Most people would be given the current situation. It is difficult to know what to do, house prices are falling, share prices are falling and returns from bonds are not what we would expect, Now is the time to see how your investments managed to weather the storm. Was the risk as you expected? If not then you should come and consult with us.

Trillions

$700 Billion to be exact. That is the amount of money that the US plans to spend on saving its ailing house market. We are now in brand new territory. This has never been done before and we can only hope that it works. Robert Peston has some interesting things to say on this. He is being credited with the greatest financial scoop of the century for breaking the news on this. Many say that his action may well have prevented a run on HBOS deposits. Good for Robert but I cannot help but think that the powers that be leaked this information so as the Government and particularly the Prime Minister could be seen to be involved. Well whatever the reason it had a pretty good effect!

Some market cheer

The recent events just go to show that it is not about “timing the market but time in the market” Yesterday was the all time one day rise in the market. Anyone who decided to run for cover will have been left far behind. The next few weeks will be pivotal for the market. If we continue to make small gains throughout the next fortnight then we may be able to get back on track by the end of the year.

Meltdown Monday

Just when we thought that it could not get any worse along comes "meltdown monday." The odd thing about this is that many people have known that Lehman Brothers were in a precarious state for some time - so you would think that it would already be priced into the market.