21/04/2012

More about what the charts below tell me and investment advice.

If the price today is 1.400 and the maximum price 1.500 eventually as SP500, should you invest in SP500 now ? Do you want to gamble with your money to eventually get 7 percent. Of course not. Get out of the stock markets now and hold all your money on a current account which you can move immediately. Bonds will not go higher and the yield is extremely low unless you want to take risks. Bond prices can only fall. Wait for a new long-term opportunity. This is my advice. Cash is the king now. Since Angela Merkel and Ben Bernanke both are afraid of bank-runs you should see to that your money can be moved out of the bank quickly.  If one bank-run happens in for instance Chicago it will only take hours next morning until banks in Germany will see big money moving out and eventual bank-runs start in Europe. As Bernanke said, we cannot stop this anymore.

The weekly chart does not show any change since last week and the daily chart is moving sideways. Only if you are a day trader you should participate in the stock market. Do not try yourself to day trade because only 2,5 percent of day traders make a profit and I promise that it will take at least 8 years to make profits.

So where should you look for investment. My advice is to be prepared to buy apartments  at the sea in southern Spain soon. Prices might drop another 20 percent or so but it is worth looking in to it now and pinpoint the apartments you want.

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