Hello Crazy Chums,

The Footsie has been gingerly approaching new highs for the last two years. It creeps up and then touches base and creeps down again. All very predictable. When you come to a big target, you don’t bound over it with enthusiasm, you look right and left for hidden dangers before you proceed.

But the fact remains that shares are rather bullish. And that’s in the face of big national debts, big unemployment and nervousness of spending among consumers, or ordinary folk, as I prefer to call them.

Now as most shares are more highly valued than a few months ago, there are some sectors which are still not anywhere near their one or two year highs. Two sectors which are not doing as well as others are banks and oil.

Now you would expect banks to be in a state. They lost an awful lot of shareholders money, and we all have long memories where nasty losses are concerned. It will be some years before we can trust banks with our investment money again. Even so, I expect bank shares – so cheap in price to earnings terms – to improve slowly but surely. To that end my remaining cash still in bank shares will stay there.

The other sector which has not done as well as some other giant shares around it, is the oil selling area. Those companies which only explore for oil rather than sell it have done ok, but the big sellers, who also explore, have not improved as much as other Footsie shares. Some have, yes, but were’ discussing the general here.

So I might plough a little more money into oil companies, now. I already have loads of black shares, but there’s no harm in buying more, to hold at least until they catch up on other rising Footsie stocks. But you must make up your own minds. Every body makes mistakes. God bless

Posted Sat Mar 13, 06:02 AM | Permlink: # | Comment |