The financial stimulus packages introduced by Governments to free up the movement of credit between the banks and other financial institutions has been greeted by share markets in the US, Europe, Asia and Australia with substantial rises and prices of shares increasing.
The share markets will be watching how each other reacts and in the near term will rise as each share market in other reason continue to rise and investor confidence returns.
This will last until there are any further bank failures, company profit warnings or losses that were unexpected or the loss of jobs from the bigger companies resulting in loss of confidence by investors leading to the share market returning to wild swings, volitilty and a downturn in the share market indexes.
Two other factors to watch will be the price of oil and gold and currency fluctations.
During this time some good shares will be available at bargin prices for the long term investors.
