After gains in US markets yesterday, and the Wells, Fargo and Co bank announcing a higher than expected profit.
But Comsec chief economist Craig James says there is still a bumpy road ahead. “Investors shouldn’t be surprised if companies report declines of up to 50 per cent in earnings per share compared with a year earlier,” he said.
Between counter-productive government stimulus plans, high unemployment and reduced profits, I don’t think we can expect any gains for a while yet. Anyone needing to get their superannuation out now is not going to be happy.
But if you have spare cash and a long term plan, it is a better time to be buying shares than selling them. And the same goes for real estate.