How fortunate I am, to have been out of the markets and in a Safe Haven over the last few weeks. No anxious watching of the screen to see whether the markets and my investments are on the slide. Rather a relaxed complacency has overcome this particular Saltydog as my investments "Flat Line". I am aware that this term is normally associated with a heart stopping moment on one of the TV Hospital soaps. Not so in this case. It is more a cause for euphoria and relief. I will stay in bed for longer and happily miss out on those early morning nail-biting moments of anticipation.
The question is how long can we expect the above situation to last.
Saltydog Investor is all about supplying the information and numbers for subscribers to use, to preserve their wealth when markets are on the downhill slopes, and to assist their decision making to increase their wealth when the markets are on the rise.
So perhaps it is worth a simplistic look at the movement of the FTSE100 over the last twelve years, taking our starting point in early 2000 when the FTSE100 was at 6900
3 years later Early 2003 3600 a fall of 3300 points.
4½ years later Mid 2007 6700 a rise of 3100 points.
1½ years later Early 2009 3500 a fall of 3200 points.
1½years later July 2011 6050 a rise of 2550 points.
4 months later Oct 2011 4950 a fall of 1100 points.
6 months later Mar 2012 5950 a rise of 1000 points.
Currently May 2012 5550 a fall of 400 points.
So at first glance it would appear that the swings are getting more frequent and smaller in size. But we also need to consider how far the present slide may go.
Certainly, with the general political unrest in Europe, the change of government in France and Greece with the accompanying economic redirection, and the almost certain bankruptcy of some of the weaker Eurozone countries, this is indeed a time for great caution.
Fortunately, those anchored in a Safe Haven, will be able to watch this play out from a place of relative security.