Patience is a virtue
Friday October 10, 2008
Stock markets have shown no signs of recovery in the last week, despite several measures having been taken to address the current economic crisis. With many people crying doomsday, it seems as if there is no hope, but this is unrealistic.
The RBA cut rates by a full percentage point just earlier this week, yet as stock markets have not continued to grow after a bump following the announcement now many are crying that this has done nothing to help. This is failing to take into account that many people are wary about taking on new investments, so even massive interest rate drops will take time to have an effect as people hesitate to borrow money.
Panic never helps, so be sure to decide on buying shares and selling shares carefully so that you do not allow the current economic crisis to have a worse effect on your long-term finances than it needs to.
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