Stocks Section

Higher Stockmarket Risk Than Potential Reward?

April 2005

One of the problems with the internet led information explosion is there's simply too much information. Too many views, too many pundits so to speak.

When it comes to the stockmarkets one can instantly knock out most of the research reports and views that are published by the investment banks because a) they're nothing more than marketing and b) are normally always forecasting higher prices (bad news doesn't produce much business). So the independent pundits are normally the best to follow, especially those who have built their reputations over a decade or more.

One market commentator to always take note of is the Far East based Swiss economist and hedge fund manager Dr Marc Faber. For a long time he's published a monthly newsletter on the global markets as well as publishing some free comments on his website.

In his latest comment he thinks that a general tightening of credit in the US has led to declining financial stocks which in turn doesn't forebode well for the western stockmarkets. If you're invested in UK stocks and have enjoyed some good returns over the last few years you should read the report and draw your own conclusions.

See Also

• Marc Faber's website
• An Amazon review of Faber's latest book ' Fools Gold'