Tuesday, August 01, 2006

Market update for 1st August

The Market moved all over the place today. It was up by 20 points and then down by 15 and back up by 5.

I suspect this is all to do with the interest rate issue. Whatwill they be tommorrow ? There is 2 options for the interest rates. The first will be it can go up by 0.25% and the second is it will go up y 0.5%.

I think it will be the second one and won't this have a major impact on some families. Those that can't afford to pay will lose their homes. All because of petrol and bananas.

Well we will just have to wait and see. Longer term the interest rate increase will not have a major effect on my share holdings asI have targeted companies with low to medium risk with debt.

Good Luck if you have high Debt/Equity companies in your portfolio.

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