Monday Update On The Stock Markets

As I talked about on Friday 6th March, today was always going to be an interesting day for the Stock Markets, and I predicted that there was no good news around the corner, and bad news seemed to be coming everyday. This was strengthened by the recent news that British mortgage lender, Lloyds have now sold a 75% share holding in exchange for a £258 billion bailout from the Government. The banks seems to be falling apart and likewise it will be interesting to see which bank is next!

Going back to the Stock Markets, Wall Street closed at 6523 today which was all time low and it fell 156 pips from the 6679 level on Friday. The S&P500 fell nearly 15 pips from Friday closing at 674.92 which again was an all time low. The FTSE 100 also fell over 60 pips closing at 3483. We also similar movements in both German Dax and the Nikkei 225 as well.

It is hard to pinpoint exactly why the stocks all fell, but there is no good news in the economy. Billionaire and legendary investor, Warren Buffet said the economy had fallen over a cliff in a recent interview and in a way that probably worsened this situation further. Many months ago he also said that the stock markets were at the lowest levels and it was a perfect time to buy, and look how wrong he was!

It is hard to predict the low levels of the all of the indicies and any prediction is like finding a needle ina haystack - it is virtually impossible. I could personally see the FTSE falling as low as 3000, the S&P falling to 600 and Wall Street falling to 6000. Remember these are all predictions, but I still dont think we have hit the lowest levels and I still believe there is a lot more bad news out there just waiting to be revealed.

Kind Regards

Robert Stewart