Making money!!!

So, it is all gloom and doom. "El crisis", the credit crunch and oil prices climbing again the headlines don't make pleasant reading. But wait a minute!!!!

In August (2008), with all these doom laden headlines, the FTSE 100 index is up 3 1/2%. The dollar has climbed 8% against the Euro and some investments are MAKING money.

It is important that we understand that there are still major challenges coming up but this movement in August may be a demonstration of how markets work. Markets ANTICIPATE the economic situation. The reason why markets have fallen so far is because they have been expecting for 12 months the write downs from the credit crisis etc.

There is still uncertainty in the market. This means that the markets will be cautious until there is a bit more clarity. But as soon as the perception enters the market that most of the bad news is in the open markets could take off again. In fact we could be in the middle of a recession when the markets start climbing again (like they have in August) If you look back at your charts this often happens after a downturn.

We will have to wait and see but many of the very famous investors have mafe their money by investing when the headlines are at their worst.

Life is for livng