Is it a bear market rally that we witness now, or is it a normal rally benefiting all those who had the money and the guts to sit out the stock crisis? I think the latter. And of course, I want to believe that, as I moved free money into the stock exchange from October 2008 on. On a relative low point, although not at the lowest point of March this year. I did not expect such a once in a century depression of the stock markets, to be honest. Now, my new investments are in balance. And I'm speculating on an ongoing stock rally bringing the stocks back to the level of Summer 2008. Let's say a doubling of the stock indices (e.g, an AEX of 500+, while it is now @ 260).
Never be to quick in declaring the open markets "dead". Also the financial markets seem to recover from their biggest shock since 1929 and the Great Depression of the early 1930s. Recovering financial markets will make lending easier, and I'm sure that the surviving banks will be able to return the tax payers money in a few years time.
Thursday, May 7, 2009
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