Sunday, 3 February 2013

2013 ( continuation)

  One thing for sure ,is people`s short memories can be to our advantage. Not one person has mentioned that the UK Index was at 7000 in 1999.
   It`s a strange fact that people have such selective and short memories.One should always try one`s best to avoid such short-termism.Here`s the reminder of returns ,since 1929 ;


   Now, I was assuming we are following the 1974 recession . But , we may be following a 1951  type correction .Only time will tell on that one .


     Interestingly enough, as the chart shows gold and silver have also nowhere near reached their optimum prices ,in the 2000`s.

Gold and Silver Prices - 100 Year Historical Chart
 Back to the stock market.
   Early 2013,has seen a rise and the spring if the usual occurs will see a fall.
     While this usual habit occurs do not forget to ponder the long term targets ,you have in  mind.Remember the FTSE hit 7000 in 1999 . Well today that equates to FTSE 15,000 at the peak.Thus one can safely assume stock indices in january 2013 are undervalued.

   Itself repeats history.

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