Community Views : What’s on the boards today….11th March 2011

11th March 2011


"Markets have dropped after northern Japan was rocked by a massive earthquake, measuring 8.9 in magnitude, which reached the capital Tokyo. The FTSE 100 has dropped 21 points or some 0.35% to 5825 points."

Julian Stevens writes: "Once again, market levels are being driven by sentiment and fragile confidence as opposed to fundamentals. But fundamentals are what always win out over the long term ~ they have to, it can't be any other way. So sit tight, keep your monthly contributions to your pension plan or ISA going and sooner or later things will pick up again."

Alan Lazenby replied: "Well said Julian, leave now and you will never time the move back in correctly. A Big bouce will be due when some good news hits."

The Telegraph has covered this as well:

"Japan shares tumble, yen falls after massive earthquake. Tokyo's benchmark Nikkei 225 tumbled 1.7pc, hitting a 5-week low, and the yen fell after a massive earthquake hit the northeast coast of Japan on Friday."

The Telegraph

"Sales of emerging markets funds collapsed by 27pc last month, according to Skandia Investments, but financial advisers claim investors willing to accept higher risks in pursuit of higher returns may buy at bargain prices."

The Guardian

"New fears for Spain as banks fail stress tests and debt is downgraded. Ratings agency's concern over cost of rescuing financial sector grows as Spain's banks are told to find €17bn extra capital"

SameOldBlues thinks: "Where was Moody's in the lead up to the meltdown? – And so much for the auditing of banks by accountants. Issuing downgrades is only compounding the problem (like putting out the fire with gasoline). Collapsing economies have the crushing physical force of an earthquake and the people caught up in the debris could do without the sanctimonious finger waving of the credit agencies!"

On the Telegraph:

bluebottle says: "Do you trust Moody's? No. Would you trust an unelected commission that wants to take our money and line its own pockets and extend its own powers? NO. So, would you trust a Spanish Prime Minister or Politician? No. OR Merkel? No. Or Sarkoy? No. Or anyone who is motivated to keep the merry go round – er, going around whilst taxpayers get fleeced? No. Who can you trust? Yourself and your self only. The bankers and politicians are untrustworthy scum and if you believe even 10% of what they say – you will die poor."

The Independent readers are discussing the downgrades and the Eurozone as well:

"EU leaders shift focus of rescue plans to the euro"

Newsjunkie comments: "Ireland is like a plug in the hull of the one-size-fits-all single currency. If the plug fails then the entire vessel will start taking on water. But keeping the plug in place is not just in the hands of the Brussels bureaucracy, is it? The actions of Moody's and the other credit rating agencies determine whether that plug will hold, or whether it pops free, letting in the water.

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