Wednesday, 28 January 2009

Who else gained from the recession ?


We are now living at the really excited time. All of the banks in the UK are now having the financial crisis, at the same time. This is the situation that has ever never been in history. The recession is soaring and seems to be unpredicted about the end. People’s confidence and expectation about the economy is falling to the lowest point. Investors are now withdrawing away from the economy.

But it’s not hopeless about getting advantage from the situation. I think that, people who are flexible in market share prices and have little bit lucky, can earn a lot of money. Let’s take a simple example in real life. Most of us tend to buy more, or just buy things when the prices of them are at the lowest. You often buy clothes after Christmas, when the prices are discounted into 70%. It’s same with the share prices. When the business is not doing well, investor’s confidence is low, then they will withdraw their money and massively sell it. And when the prices of shares become cheap, it’s now the time for people to make the choice. In my opinion, company which has big affect on the economy is a good choice, because the government might not let the company go into bankrupt due to its strongly effect. An example is the AIG in America. When the price of share of AIG reaches its warning low point, the supply of shares of AIG was increase very fast while people expected the continuous falling in its share price. But finally, the American saved this company and this company turned over the difficult time to reach the growth after that. So a lot of people were profited by buying shares at the right time.

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