how come the turnaround happened so quick?

[mace]

Sadly, I started investing in 1997 and am currently down 12% on my portfolio, having put money in to the stock market at regular intervals since 1997.
On the bright side, the recent surge in the stock market at least means that I'm making more money sat on the bench than I did whilst in my last employment.

[Not So Wise]

We are coming out of it so fast for same reasons we had such boom before and the crash that followed, because nothing, absolutely nothing is based on fundamentals (economic or otherwise) anymore, it's all about perception and sentiment with a unhealthily dose of "I don't want to miss the gravy train/get stuck with the bill" mentality

Get enough people thinking "things are getting better" and it spreads like a virus and before you know it everything is on a upwards trend (same happens in reverse) , balance sheets are now pretty meaningless

This was one of the main reasons I pulled out nearly everything out of the stock market a good few years ago, it's now pure gambling, gambling that lot of people will "feel" one way or the other about something

Sometime, probably in the next 50 years, someone people are going to listen to is going to point out that the emperor is not wearing any clothes and then modern civilisation as we know it will be gone, but seems it will not be right now

[DieScum]

People are talking about the W shaped recession.

Obviously nobody knows but if you look at shares are they really going to tank that much again in the near future?

Since the lows of March there have been multi baggers all over the place. There are shares currently trading at discount to cash in the bank.

Surely it will take another shock like Lehmans going down to kick off something again.

Worldwide the banks, well the investment banking side, are starting to make serious profits and are starting to pay back the state bailouts, with significant interest.

My money is on this being a once in a lifetime, or at least fair chunk of a lifetime, chance to buy some stocks extremely cheaply. A few grand invested earlier this year, or now, could see you with a healthy dividend income, zero hassle and growing inflation proof asset for ever.

Having said all that I know f-all about economics. I have heard about optimism bias though so I may well be farked.

[mace]

I think the assessment of investing as gambling is an accurate one. Back in the old days when very few people were allowed to invest in stocks and only via a broker, the brokers would spend time assessing the fundamentals of a company. Nowadays, with hedging and derivatives, unit trusts and pensions, investments from abroad etc. all the news that tells you whether the stock market will go up or down is after the fact. I do this rather than gambling because the margins are better. Gambling - typical 5-20% margin, stock investment can be less than 1%. I avoid property investments as it's hard to pull your money out.

[DimPrawn]

My money is on this being a once in a lifetime, or at least fair chunk of a lifetime, chance to buy some stocks extremely cheaply. A few grand invested earlier this year, or now, could see you with a healthy dividend income, zero hassle and growing inflation proof asset for ever.
.

<Kirsty-and-Phil-mode>

Stock markets only ever go up. Fill yer boots!


</Kirsty-and-Phil-mode>

[SuperZ]

...

[SuperZ]

[URL="http://farm4.static.flickr.com/3433/3857769445_6ee95b3627.jpg"]

Where along the time line we are is left as an exercise for the reader.

Return to mean stage, ready for it all to happen again in x years - such are the human race a bunch of short sighted numpty sheep stored on a planet far away from other life in the universe

In a good mood today

[HairyArsedBloke]

Agreed - we're absolutely in a W shape.

Nah, I'm thinking more of an S shape .

[AlfredJPruffock]

Well if you really want to know why it was fixed so quickly - well the only option I had left to repair the Sun's Core Reactor was to use the energy I had 'borrowed' and with the Old Tardis travel back in Time to July the 3rd .

You can bet this time around I was pretty careful not to take too much juice from your Sun - well to cheer you all up I thought I'd fix those pesky markets whilst I was around - well - why not ?

Still - its fun reading all your outlandish theorys as to why its suddenly now working - as if by magic - or why it should not now be working -sometimes its best you dont know the reality.

The Sunspots will be back by Octoberish.


Never Trust
A Nurse
A Nun
A TimeTraveler

[HairyArsedBloke]

Never Trust
A Nurse
A Nun
A TimeTraveler

Or a Hippie