Hung parliament - Uncertain future?

Listed on the London Stock Exchange:

BARC 283.70p -54.55p (-16.13%)

CAU 48.25p 2.25p (-4.46%)

CRWN 30.00p 0.00p (0.00%)

FPER 5.00p 0.00p (0.00%)

FCCN 37.75p -1.25p (-3.21%)

GAR 1.75p 0.00p (0.00%)

ICA 89.5% 0.00p (0.00%)

JKX 230.80p -31.20p (-11.91%)

LLOY 53.53p -12.60p (-19.05%)

LLPE 60.50p -0.25p (-0.41%)

MAI 158.50p +0.50p (+0.32%)

QQ. 120.00p -7.50p (-5.88%)

RBS 45.50p -8.85p (-16.28%)

UNG 3.00p 0.25p (-7.69%)

Listed on the New York Stock Exchange:

C $4.00 -$0.16 (-3.85%) - since purchase on 5/5/2010

In turbulent times like these, I am glad that I take the long term view when investing in the stock market. Maybe I should master the short term strategies so that I can hedge my portfolio against bad events so that I can increase my overall gains. To do this I need to learn technical analysis and have the appropriate tools.

Goldman Sachs is hit by another bad event, which the shareholders filed lawsuits for negligence. They are not having a good time at the moment due to the SEC accusations of fraud in the market place and the last thing they need is this. Icelandic eruption disrupts flights in Ireland and Scotland affected some airlines. UK gets a hung parliament which made investors nervous. These and other less important events have been overshadowed by the Greek debt crisis. The financial markets are still reacting badly to the Greek debt crisis because it may spread to other weaker EU economies; Spain, Portugal, Ireland and possibly the UK. The EU has broken all of its rules to shore up the euro.

Things have got very ugly in one week since I posted my last post. The Greek crisis and hung parliament in the UK sent the FTSE100 went down by almost 8% this week. My portfolio gains have been virtually wiped out for now. My portfolio loss is about -2.7% (-2.3% excluding C). I think the investors are seriously overreacting to whole situation. Even the good first quarters for LLOY and RBS cannot halt the decline. The EU are likely to rescue the euro for political reasons and the hung parliament is just a blip for the London markets if the Tories and Lib Dems form a government. I believe that the Conservative-Lib Dem coalition is more beneficial to the UK economy hence my portfolio may benefit from this. I have bought C based on my own analysis, which I will post at the latest by next Friday. I think the banks may fall a bit further before it get better due to the Greek crisis. No good news may halt the decline.  I wonder what the next trading week brings in store for me.