September was a bad month. The ride up and down the market was fun for a trader but unsettling for an investor. I do feel better than I felt at the end of August about the EU. The reason I can provide is the fact that I sense the market was waiting for someone to accept responsibility for the mess they have created. The difference between 2008 and 2011 is the fact that in 2008 a smelly skeleton was discovered as a complete surprise, where as in 2011 everybody knows about the skeleton but want somebody to actually open the cupboard and claim it!
Make no mistake, when the final medicine gets dished out, or the actual double dip recession is formally announced, the market will crack the whip with a knee-jerk 10% drop. But, I believe the bottom of this negative spiral is very close and investors are buying value on the dips.
For longer term investors, do not sell good shares, start buying good shares on dips if you have cash or trust your Unit Trust Fund Manager to do it for you.
Always remember, never use short term funds for equity investments, or hold long term money in cash!
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