Despite the negative sentiment, some investors are seeing an opportunity to buy undervalued stocks of companies with solid fundamentals. Others have found stocks with new development so strong that they have bucked the trend and seen extraordinary gains in a short period of time.
Lately there has been much talk around two words, 'quantitative easing'. The Bank of England has indicated that it is likely to opt for this method of stimulation whereas the US certainly has not. Instead they have attempted to stimulate the economy using 'Operation Twist'. This was not well received by investors and it seems increasingly likely that the Federal Reserve may have to attempt another form of stimulation, possibly QE3. Combined with further hopes that Europe may resolve its debt crisis it looks like the outlook for stocks may be a little more positive as we head into the fourth quarter of 2011.
Martin Auger | Reyker Securities
