With memories of the last bull market still fresh, and the economic crisis of the last couple of years starting to fade, investors are returning to the equity markets in a hope of making better returns.
Many investors are assuming that the stock market will return to pre-crisis levels, and are willing to accept the risks involved in equity trading . The market rally of recent months, allied with rising inflation and low interest rates, has given an impetus to savers looking for a good home for their money.
With the Consumer Price Index (CPI) rising at an annual rate of 3.4 per cent last month, the highest rate for a year and a half, mainly due to high petrol prices, a weak pound and the change in VAT, and unemployment levels also disturbing, many are looking to use rising stock prices as the best way of sustaining their savings and making a return after inflation during the downturn.
There are many opportunities to be found in stocks, but, as always, it is looking where to look, and investing in a way that suits your own personal circumstances. Many prefer the prices of larger, blue chip companies, which often survive the bad times better than most.
However, there are still many problems facing markets around the world, from Goldman Sachs to the Greek national economy, so others are searching for the best savings rate and hope the negative indicators start turning around soon. The jury is still out on whether the stock market is worth the risk.
Are shares the best investment
Are shares the best investment
Thu, 22 Apr 2010
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