Can you say “volatility”?

Well, the news of European bank recapitalisations by governments underpinned an optimistic rally on the stock markets. But they will not return to previous levels. Volatility like this is a trader’s paradise. Index fluctuations of 3% (and up to 8%) are extraordinary and not indicative of value. But opinions seem to have value. The real economy still needs work. If you’re a buyer, buy for the long term. And beware. Look for value in the real economy. Buy real assets if you can.


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