The financial markets appear to be operating a ratchet system regarding good news and bad news. If bad news is received it is immediately translated into lower prices. If good news is received it merely stabilises matters.
An example of good news is yesterday's story regarding December house price rises. The Halifax, Britain's largest mortgage lender issued a report that said prices had risen 1.3%. The market screened out the good news and carried on with the doom and gloom.
Examples of bad news include airline Easyjet and retailer Marks and Spencer. Both companies reported December like for like turnover figures approximately 2% down on 2006. The market responded by marking both shares down by around 15%. Now forgive me if I'm wrong, but hasn't the market already factored this level of doom and gloom? In addition within the bad news M&S reported online sales up 78%. This was largely brushed over.
If things carry on in this direction, then opportunities to acquire assets of all kinds will present themselves.
