The Earthquakes in Japan and Christchurch, along with the eruption of the Middle East, have certainly highlighted the nervous nature of the markets over the last month or so, especially the last 2 weeks.
All these macro factors of course have actual economic impacts on local and global economies and are going to drag on stockmarkets over the coming months.
I am keeping my dividend pile at hand ready for some bargains because global stockmarkets have gotten well away from their true values given the tenuous nature of the global economy.
They are set for further pull backs in my humble and not so humble opinion.
Many people are emailing me asking whether they should be selling now that markets are retreating and they are worried about the Middle East and the economic fallout from that.
My reply to those wanting to sell is always the same. If you own shares in a good company and outside influences may have perceived or actual impacts on the company and therefore its share price, take the opportunity to buy a bigger stake!
This is not a permanent thing and long term you will be a happy little camper if you don't follow all those other lemmings over the cliff.
Keep the cash at hand and most of all be patient!
Here is a song to help remind you dear readers
Recent Share Investor Reading
- Share Investor Portfolio: Value @ 21 March 2011
- Whimp Makes share offers you can refuse
- Share Price Alert: Air New Zealand Ltd
- Auckland Council in conflict of interest furore over Convention Centre
- Share Price Alert: Telecom New Zealand Ltd
- Share Price Alert: Steel & Tube Ltd
- Share Price Alert: Contact Energy Ltd