Iceland banks frozen out, councils say we want our cash back!

 

The pound hit a 5 year low against the US dollar.

 

Tokyo’s shares plunged 24% during the week, double their fall in 1987.

 

Bank of England rate cut by 0.5% to 4.5% – this was not favourably received by the stock market, perhaps it was too little too late and I believe that further cuts are drastically needed to kick start the economy and the housing market. Neither this nor the bank rescue package had the positive effect which was hoped would see the FTSE begin to recover.

 

Volatile markets can test any investors resolve and 2008 has seen one of the most turbulent periods for many years. However, while the underlying causes this time are new short term dips in markets have been seen many times before and reinforce the need to keep a long term prospective.

 

To cap it all off, John Terry’s back injury means that he is unable to play tomorrow! Lets hope the rest of our boys have the lion in their hearts, even though they may have less in the bank then they did a few weeks ago, and manage to give us all something to cheer about when they play Kazakhstan.

 

I would reiterate my advice from Monday, DO NOT SELL, stick to the long term plan and hold your nerve. Now is not the time to move. On the other hand, this is the best sale for the last 20 years, a lot of good companies are grossly undervalued at present, buying today – particularly through an ISA or investment bond, could mean that you may see a good profit in years to come.

 

If in doubt I am only a phone call or email away.