Things have got better for now. EU has finally agreed a €750 guarantee plan, to stop the Greek crisis spread to the weaker euro economies, which calmed the markets for now. All of the bank stocks I own have shot up massively, swinging my portfolio from a small loss of about 2.7% to a profit of approximately 7.2%. Others have gone up as well contributing to the rise in the portfolio value.
In the short term, the market has been oversold (see graph) so it may rise a little bit for now. However, due to the uncertainty of who may be in power in Westminster the markets may be a bit volatile in the very short term.
In the longer term, the market may fall a bit before it stabilises since it has been overbought for the past month from March to April (see graph). Looking at the long term, say five year span, the trend will definitely be up but it may be a long a bumpy road ahead. To come out as a winner, you have to pick the right stocks using the strategies I have mentioned earlier in the blog.
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