This article was written by Peter Switzer in “The Daily Telegraph” on November 24, 2007
* Peter Switzer is founder of Switzer Financial Services – http://www.switzer.com.au

WITH finance markets giving out scary readings, the stock market looking vulnerable and even our dollar falling against the greenback, the smart investor should ask what time is it? No, I’m not loopy. Investment experts have often looked to an old technique called the investment clock to work out what they should do next with their money.

While not flawless the clock often is a guide for smart decisions.

A clock at 12 o’clock is boom time. At one o’clock interest rates are rising. By two, share prices start to fall and by three commodity prices start to fall too.

At five, real estate feels the pinch and six o’clock is recession.

At seven o’clock the Reserve Bank cuts interest rates to kick-start the economy and by eight share prices anticipate an improving economy, beginning to rise.

Commodity prices perk up at nine o’clock and, as unemployment falls, real estate makes a comeback about 10 or 11 o’clock.

So, what’s the time right now? ….read more

(If you would like a copy of the Investment Clock please contact us at pennisi@pennisi.com.au)

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