For an effective Investment Strategy sound
Investment advise plays an important role. There have been various
incidents, which shook the financial world which include the Tulip
Bulbs in the 1630's in Holland, the famous stock market crash in
1929 and April14, 2000 crash at Dow and NASDAQ are indicators to
device a foolproof investment strategy.
Facts are Monday's activity does not mean much
unless the market has dramatically risen or fallen. With these
uncertainties a watertight investment strategy needs to be
established. In the last century, there was unrest when oil prices
dipped 5 times lower. Beating it all are classic cases in the
energy industry where powerful dynasties were built. Companies
started with less then $1000 have grown to earn $445,000,000 in
eight years.
To offer sound Investment advice, conventional
wisdom does not score and the down market environment requires
special skills. In fact, spending habits will be reduced with
exceptions on alcohol and movies. Banks will toughen out and
manipulate ratios as there would be a sizeable drop their
valuation of top companies. E-Commerce will perish and companies
with revenue will be the only ones financed. Financial
institutions will cash in and make up for lost time.