Germany And France Lead The Way

Official figures for Q2 2009 show that Germany and France both returned to growth and hence pulled out of recession. Will this soon herald interest rate increases if these behemoths perk up again? Presumably not for a while, there is a difference between target inflation and growth, although one can certainly lead to the other.

Reading reports is detrimental to your financial health. Report after report after report is published giving some viewpoint on the economy. Some are negative, some positive. It seems almost random as to whether the next one will be good or bad. To the amateur investor it is a daunting task to read headlines and come up with some conclusion or plan of action based on this overload. Just today the US stock market doesn't know which way to go as there are jobless reports (negative), retail sales reports (negative), property foreclosure reports (negative), Fed meetings (positive), and recessionary data (positive) from Germany and France as discussed above. No doubt tomorrow there will be a new batch. And this is August...the quiet period, a time when all the financial brains should be off sunning their asses in St.Lucia! As it is impossible to digest all this information, possibly an approach is to ignore it completely and simply examine company fundamentals when making investing decisions. However this would be a risky strategy as even the best of companies and sectors are affected by external influences over which they have no control (think credit crunch).

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