There are many factors to take into consideration when looking to acquire property in markets around the world. However, what do you think are the greatest influences on worldwide property markets and property prices?
Hugely so, I would say that the media plays a part in everything these days. An example of media playing a part(I mean media, not as in newspapers or TV, but on a smaller scale) is in bond trading(and stock markets obviously). Everyday companies come out with what they think the resistance and support lines are in a certain market. If they give these sheets to enough people then they will be the resistance/support lines. Sure, you get natural support/resistance lines, but also man made ones from history. Take 6,000 in the FTSE for example, that is a natural one, but there are other man made ones. Sorry, that isn't the best example I have ever come up with and to be fair I am not explaining myself very well.Does the media play any role in influencing investor sentiment?
Yeah the term is self fulfilling for the support lines etc, but the term I was thinking of for the magazines such as Times etc was Magazine Cover Indicator. Sorry, no chocolate biscuit for you.I think the term you are thinking of is a "self fulfilling prophecy" when enough followers take action whether the information they are acting upon is correct or not. I have some experience of stocks and shares and I appreciate your example which is basically support lines created by moving averages.
However, support lines, graphs and moving averages are based upon historic patterns and the economic situation we are in today is not something any of us will ever have experienced before (or likely to experience ever again).
Yeah definitely, it is a herd mentality in most walks of life.Ah well at least that will help with my diet lol
The media do have a massive influence on some of the less experienced investors although even the more experienced will tag along if they see the hot money following.
A perfect example of him is when he invested in oil the other week. Most other people were saying it is going to drop further, but he bought. He knows he can't tell where the bottom of the market is going to be, but still saw value at the price he bought it at.He hasnt done too badly has he
I was a bond trader for over 10 years and it is very difficult to admit you put on a bad trade and get out of it straight away. A lot more difficult than it sounds, just human nature I suppose.Then again he doesnt always get it right - he bought Tesco shares when they started to get in trouble and everyone was selling. However, like a true professional investor he sold as soon as he realised the mistake and took a big hit. They have since fallen further.
A professional investors knows when to bank a profit as much as when to take a loss - taking a loss is not an easy art to perfect as it goes against the ego of many "experts". However, as they say "pride comes before a fall" - if you get an investment wrong just get out and dont let your heart rule your head.......
One simple way to test your own investments on a regular basis is to ask yourself "Would I buy this investment today?" - if you would, great, if not, then why not?
I often got a bigger buzz being down in the morning and getting back to even in the afternoon than making a few grand on the open. Strange!A man after my own heart - I was a stockbroker for 15 years and I agree, admitting you got an investment wrong is often harder than taking a profit on your good ones. Its easy to build up those tax losses lol Not too bad if you have the profits to offset against lol