SMOKE and MIRRORS

It seems that different views are coming from the newspapers. Some say we are at the bottom of the recession and others say green shoots of recovery are with us ! It is all like a river estuary whereby the river is running out when the new tide is starting to come in. Some parts of the economy will recover as others are still in a very painful state. The stock market and banks will recover quickest and evidence of both has been stated in the markets.

As to property prices some areas of the market are now moving slowly and depending on prices properties will sell. The travel market is on its knees and it is interesting that 20% of independant travel agents have closed in the last year. The big boys have reduced the holidays on offer and put up prices. So have airlines ( although they advertise that this is not happening).

It will be a quiet summer and time will improve the situation. Most people have lost a lot on their assets and savings and some may never recover. If you are young enough you will be able to change investment directions and make money over the next few years. Those who are older will not have the chance and will have to cut the cloth accordingly.

Let us hope that the weather is good for the summer - at least that will make us happier.