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Opportunity For Investment
Monday Musings 12/04/2021
At the moment because of the relaxation of stamp duty there is a buyer’s market in the UK housing sector, in other words there are more buyers than sellers which is leading to a surge in house prices. The question then is why are we seeing the same surge as far as the world markets are concerned. Like any other commodity shares are subject to supply and demand so obviously if demand outstrips supply the price, – value – of shares, will rise.
Since the various vaccines have been put in arms around the world investors have taken heart because they believe that economies around the world will start to recover. The sums of money being pumped into Equity funds are beyond any previous experience. According to the Bank of America a net $576 million has flowed into equity funds in the last five months, this should be compared to the net $452 billion the same funds took in the previous 12 years.
This could be explained in part by the support that the central banks and governments have pumped into the economy during the Covid crisis which will of course mean that many millions will have found its way into the pockets of investors. If you take into account that many world markets are up to 20% behind their record highs, there could still be more growth to come.
Opportunity for investment – What I would say to you my Monday Musers is do not miss out on the potential to catch this upswing. If you have money “invested” in the bank that is more than you need for everyday expenses plus your rainy-day fund, you really should be talking to Straight Talk about the opportunities that are available.
So, to the markets