Some news for investors

cali4995 wrote:Personally the only American companies
that I have faith in anymore are those that focus on doing only one thing but doing it well. And
very few of them follow that simple format. Fedex (FDX) is an excellent case study illustration.

cali4995 wrote: I doubt if the "experts" can change a light bulb.
Their analysis' seem to keep changing with the tide? the end is near! the end is near!

Investors say gold may hit $2,000
Philip Scott, This is Money
30 July 2009

Investors are gearing up for another hike in the gold price as individuals rush in to stave off the rising threat of heavy inflation.

Paul Tustain, of gold traders Bullion Vault, believes that private investors, are buying because they believe that, in the long term, the price of bullion reaching $2,000 is a significant possiblity.

And US investment firm, Moonraker Fund Management, say that 20 out of 22, or 91%, of hedge fund managers that it interviewed are buying gold to protect their personal wealth against excessive inflation.

Tustain says: 'Our experience right now is that, the typical private investor buying gold, does not trust any 'green shoots' of recovery.

'They believe that strong house prices and cheap credit are a thing of the past and they are not convinced by any equity market recovery, but that there is better to come from gold, even up to $2,000 an ounce.'

Moonraker found that the vast majority of those they surveyed were buying physical gold for fear that the quantitative easing programme being seen in the Anglo Saxon economies would eventually result in a bout of steep price rises.

Historically, gold is considered to be the ultimate safe haven from turbulent markets, low interest rates and the threat of inflation.

Every year since 2001, it has experienced gains. Generally speaking, during the past decade, the precious metal has tended to rise for a term of around six to nine months, and then plateau before rising again. Since the financial crisis began it has on a number of occasions hit the $1,000 mark.

Like any other commodity it can endure heavy bouts of volatility, but over the longer term the returns have been spectacular. Over five years to the end of 2008, in dollar terms, it is up by 102% and by a massive 195% over the past decade.

In April, Charles Gibson, an analyst, at Edison Investment Research, claimed that the dramatic monetary policy tactics of central banks, could even potentially, push the price of gold to more than $1,500 an ounce.

During the past 12 months its value has risen by 4% to stand today at $931 an ounce, and in just the last three months, it has surged ahead by more than 5%.

FTSE 100: stock market has best month in more than six years

The stock market has enjoyed its best month in more than six years, boosting the savings of millions of investors and bringing hope that the worst of the recession may be over.

By Harry Wallop and Edmund Conway
Published: 10:05PM BST 31 Jul 2009

The FTSE 100 index of leading shares climbed 8.5 per cent in July, adding £134 billion to the value of the stock market, its best monthly performance since the fall of Baghdad during the second Gulf war in April, 2003.

The rise in share prices followed a series of strong profit figures from Britain’s biggest companies, with many proving to investors that they are coping well in the recession by cutting costs.

Barclays, which avoided having to ask for a Government bail-out during the recent banking crisis, is even expected to disclose next week that its wage bill has increased by more than 20 per cent after it paid out substantial bonuses to keep hold of bankers who have helped the company post a predicted £2 billion profit. Although the FTSE 100 index dropped 23.25 points yesterday to close at 4608.32, overall it finished the month up 8.5 per cent.

The rally follows a dismal period for the stock market between the summer of 2007 and Easter this year, when the FTSE 100 fell 47 per cent.

David Schwartz, a stock market historian, said: “I think we are now in a sustainable multi-month rally. We are just at the beginning of a proper bull market.”

However, he and other experts gave warning that not only did share prices have a long way to go before they returned to their most recent peak of 6,732 two years ago, but they were still 14 per cent below their level of one year ago.

There is some hope that the shares recovery signals the end of the recession.

This week, both Nationwide and the Land Registry reported a further increase in house prices, while consumer confidence and retail spending are no longer falling at record rates.

Nationwide even suggested house prices could do the “unthinkable” and finish the year higher than they started.

Richard Hunter, of financial advisers Hargreaves Lansdown, said: “It looks increasingly likely that we have hit the bottom of the recession. But it’s too early to say it’s a recovery.”

Much of the money invested in the stock market is owned by pension funds, and millions of households have their savings invested in shares through Individual Savings Accounts.