The FTSE And The Dow Keep Falling, So Just How Low Will They Go?



Posted: Monday, March 09, 2009

by Steve Hill
Stuttering therapy

As a person who enjoys "gambling" on stocks and shares I have been some what astonished as to what I have witnessed over the last eighteen months. Stock markets from around the world have been battered by the credit crunch and recessions in certain Western countries. Some long established companies have seen their share price crumble and some have even gone to the wall. The Dow Jones in the United States is currently trading at its lowest levels since 1997 and the FTSE 100 index in England is at a six year low. Many people are asking when it will all end, when will we see the bottom and therefore when will things start to improve. These are questions that even the most experienced of investors can only speculate as to the answer but in this article I will be providing my opinion of the subject.

I am somebody who does not invest in single company shares but who instead invests in funds from different regions of the world. I am currently investing on a monthly basis into a China Fund, an Indian Fund, a Latin American Fund, an Emerging Markets Fund, a UK Smaller Companies Fund and a Russian Fund. I invest on a monthly basis as this allows me to take advantage of what we call here in the UK "pound cost averaging". The unit prices of many of these funds are incredibly low at the moment which means that my monthly premium is currently purchasing twice as many units each month than at this stage last year, this will benefit me when the price rises in the future, if it ever does!

This is my prediction as to when we will reach the bottom in respect of the FTSE 100 and Dow Jones; please note that I am not a Financial Adviser and that what I am writing in this article should therefore not be seen as advice. I think that the FTSE 100 will fall as low as 2950 and the Dow as low as 5800 before bottoming out. I am hoping that these stock markets do not fall this low as it is quite a scary journey that we are on at the moment and a quick upturn will be most appreciated by many.

Steve Hill is a webmaster from the UK; he has a number of websites including:

http://www.stammering-stuttering.co.uk

http://www.adaptatech.co.uk

http://blog.stammering-stuttering.co.uk

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