Toxic waste anyone?
So I went away on holiday for a few days camping with the girlfriend. Yup, the weather was crap and we came home a day early, but still had a lovely time with her and her folks - I even managed to create some nan breads from scratch on a barbecue!
Monday morning I logged onto the web and, hold on. Wasn’t the FTSE at somewhere near 6700 when I left? Now it’s 6200. Hmm, that’s a 7.4% drop and 6 months worth of profit gone, just when my back’s turned - Doh!
OK, lets look at gold. Doh again! Why does gold currently have this yoyo effect around $666 per ounce?
Anyway, so why’s everything dropped? Well, we have had a bit of a boom lately and there seems to be a few more jitters about dodgy sub-prime loans and some poor company performance figures. Oh, and of course the worry about Credit Default Swaps turning out to be toxic waste for some financial institutions (rather your pension fund than mine).
But is that it? Seems to be. Am I missing something here? Only one thing for it then…Buy! Buy! Buy! (But be ready to Sell! Sell! Sell! if a crash pops up - i.e. don’t go on holiday!)
