Where is Superman when you need him? Gotham City is in meltdown and even Bruce Willis looks unlikely to save the world from financial collapse.

 

The FTSE 100 rallied in morning deals after sharp falls in New York overnight following the decision by Republicans to reject the bank bail out plan. We saw a decent fall in the FTSE yesterday of 5% but the sceptics always over do the ups and downs. So maybe after a day or 2 of levelling out to see if any more bad news comes out or if they can put the rescue package back together in America things might start to recover and confidence return. It also my opinion that the Bank of England must now make a major cut in interest rates to get the banks lending money again. Watch out for news on this next week.

 

SORRY to say, but it is likely that all investors will have seen falls in their fund value since last year. This is the worst financial crisis since 9/11 – 7 years ago. Had Bin Laden known that the banks were in such a state all he would have needed to do was to get Al-Qaeda to take out some sub-prime mortgages!

 

In times like this we must stick to the long term investment rules of having a diversified portfolio of equity, property and fixed interest funds, placed with top rated fund managers. Then when stability returns to the markets, we are well placed to recoup, with the gains which normally follow such declines in markets.

 

So my message is the same as always, STAY INVESTED and DO NOT SELL! If you have cash on deposit, THIS IS THE BEST OPPORTUNITY FOR 7 YEARS TO BUY INTO THE MARKETS, rather then when the FTSE returns to 6400 points.