Market Watch
The truth is that nobody knows what will happen next. For every analyst who's extremely bullish about the next six months, there's another just as bearish. Leading resource stocks like BHP Billiton and Rio Tinto have been sold down and some see this as a great opportunity. Indeed, we have long-term buys on both.
Other sectors like media have suffered. Advertising revenue has dried up and media companies now have to focus on cost cutting to pull through this difficult period. The collapse of Ansett, for example, will have an adverse impact on companies like Fairfax and PBL who benefited from the $30m per year the airline spent on advertising.
Many investors are waiting for clearer signals from the markets and the economy before plunging in. Don't wait too long. While you wait for clarity, the opportunities may in fact evaporate before your eyes.
If you're a true long-term investor you won't be particularly concerned about the next six months but rather about what the next ten years have in store.