There's no doubt I've been perturbed by the turmoil sweeping the financial markets recently, on the back of people over-extending themselves by over-borrowing and by the 'sub-prime' difficulties some influential lenders have got themselves into in consequence, and the latest news this morning, which seems to indicate that there is still further for the market to fall before it reaches a new equilibrium. The rises seen earlier this week, after last week's falls, were perphaps only a brief respite.
My outlook remains, broadly speaking, 'Don't Panic!' - in the words of Corporal Jones. I've gone through severe dips in the markets before and some of my investments have gone belly-up in the ensuing fall-out, but overall my [small] portfolio has performed moderately well, principally because there has been a pretty good spread of markets and sectors (and vehicles). Nevertheless I am watching, as best I can, what is going on. I don't think we've seen the worst yet, but at some point the markets will reach a base from which they can recover - the trick is not to start following the herd and make matters worse by over-rash actions. At least I don't have any personal debt (of any kind) to worry about. Will inflation begin to rear its ugly head once more, or will we see a period of deflation rearing its head, as it did in Japan for a number of years when markets there were in the doldrums? Now, where did I put that valium? I jest.