Stock Markets And New Opportunities
Thursday April 30, 2009
With the NAB and other major financial institutions facing profit slumps, and reports on continuing escalation of joblessness and financial hardship, it's easy to start seeing why people everywhere are beginning to fear the current state of finances. However, we are closing out the first half of 2009, and even the gloomiest of reports predict recoveries beginning in 2010.
In some cases, the psychological effects of the media bashing the recession drum have an impact that's hard to quantify. Investors, businesses and governments become very nervous, and while stock market reports are not to be taken lightly, the flow-on psychological reaction cannot be discounted either.
At any rate, Australia and the Australian stock market has been considered by many different sources to be in a good place to weather the financial crisis influencing world stock markets since late last year. One benefit worldwide investors focused on stock trading are focusing on are the opportunities being presented to us throughout this whole affair.
Undervalued shares and other investment vehicles could have us scratching our heads in 10 years time if current opportunities are not capitalised on. This goes for all investment vehicles too, and real estate, business enterprise and material goods are all presenting an undervalued investment as the market moves on fear of current economic conditions.
One investor that has put his money on the line is billionaire US trader Ted Turner who founded CNN and American cable networks. He talks about renewable energy and alternative fuels as being in a start-up stage similar to cable television was 50 years ago. Ted is investing heavily in solar and wind power, and he has set up development institutes.
One crucial area that affects renewable energy development is government support, which is classified as strong at this stage. At least one rich investor believes in the possibility of a financially viable renewable energy source for the future, and it's hard to see the opportunity that is arising.
Another example of an investor taking advantage of current stock markets and the economic climate is famed investor Warren Buffet. In recent times, Buffet has made numerous investments in key companies that he believes are undervalued and will weather the financial storm, and notably, this includes some of the troubled auto manufacturers.
Warren, who famously stated the importance of being fearful when others are greedy, and greedy when others are fearful, has also put his money on the line in light of his opinions. It begs the question, what opportunities are being presented to us in the current economic climate, and how do we also maximise potential while making sustainable investments on stock markets?
We could do worse than following the examples of the world's most knowledgeable and successful investors.