I tried to get the whole question in the title so apologies for it not being grammatically correct. Anyway, I’m trying to get a consensus view on the relative prospects of worldwide stock indices – for example, the consensus for FTSE100 is that it will breach 7000 this year. China is volatile and moves disproportionality on rumour. I want to make money (sorry) by getting a feel for which indices are hot and whats not. Thanks.
1.The only way to make a lot (or lose a lot!) of money in any market is to go against the consensus. If you go with the flow you will generally make (or lose) no more than the average. (think about it !
2. Any indices eg. FTSE or DOW will at any one time contain companies that are doing well or and others that are doing badly, so by investing in an index you are only going to get an average of the market, and because you are investing in all the companies in the indices will inevitable be investing in a lot of companies you know nothing about. Can you even name the companies that make up the Hang Seng, let alone say anything about them ?
3. Instead, nvest in individual companies which you can research and find out something about, and Britain is a good place for this because even if you want to invest in foreign companies, a lot of them list on the London market, and so you can buy and sell them relatively inexpensively.
4. Investing is a medium to long term game, be patient. If you think that the way to play the game is by buying this week and selling next, you are wrong.
5. The greatest and most successful stock market investor is -by common consent – Warren Buffet, the so-called ‘Sage of Omaha’ – read some of his books.
5. I have worked as a Stockbroker, and am a successful (generally!) investor.