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The future rich will be quietly buying

  1. Hi all.

    Needed somewhere to go to get a feel for the current market so why not go where I know, back to HC.

    IMHO, what we are seeing in the market is just an extension of what has been happening for some time, a great many shareholders expecting large returns without contributing anything, other than their capital of course.

    Unfortunately, there are just so many people who are in need of passive income, that companies are facing a real challenge of keeping themselves competitive whilst feeding their hungry shareholders.

    Of course this has always been the case, but as investors get nervous this only compounds the problem.

    The biggest perpetrators of this are the fund managers, they think they are so clever, but alas they are just big gamblers like everyone else.

    They only have one purpose and that is to make a return for their investors from the equity markets. They have a level of control that the ordinary punter doesn’t have, by virtue of the size of their positions, but they do say the bigger they are the harder they fall.

    Even with companies like MS and SUN posting earnings above market expectations, there seems to be nothing that can create calm when there is fear in the market.

    Like everyone else, I have no idea what is going to happen next; however I do see some stocks will be absolute bargains as the heard stampedes out of the market looking for the next so called “easy money”.

    There is a real crisis in the global economy right now and what worries me is how poorly this is being reported. You will read all about it, the day after it happens.

    If I was cynical, I would think that the people who owned most of the world press, had the most to loose from this, however you could hardly suggest there was any evidence of that (tongue firmly in cheek)

    What does happen if there is a melt down? What happens to the billions of dollars in super schemes that the majority of the baby boomers have bet the house on?

    The burden the Baby Boomers have already placed on future generations to pay for their retirement is already too high and my guess is that inflation will eventually kill all their plans anyway.

    No point picking up a million dollars if it looks more like Lira?

    Any way, the point of this post was that again IMHO, there will be quite a few cashed up individuals, who won’t be relying on fund managers, who will pick up some very well priced stock over the next couple of years, which will enable them to be well placed in the future.

    Whatever happens today, will ulitmately just be a blip on a graph.

    I hold no stock currently, but looking closely at Telstra and UEC, (both deservedly battered stocks).

    I think it is just a matter of time before the banks get a belting, they have been making some very lazy money for a long time and 'real' competition must be looming.

    All for now

    Regards

    Mike



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