July 3, 2008
It’s getting worse and worse out there
Anyone who thought my last post was a bit dismal should take a look at ft.com
Our three main headlines today are…
1] The price of a barrel of oil has gone past $146 (remember, the government’s own estimates are around $70 or $80).
2] The stock market has now fallen by 20 per cent from its high, the classic definition of a bear market. The fall would look even worse if not masked by commodity stocks, which have soared in the last few years and may now be over-valued.
3] Service sector activity has slipped and is now at its lowest level since 2001, according to a new survey by the Chartered Institute of Purchasing and Supply.
Other gloomy titbits around today include the following:
* Mortgage availability will continue to fall in the coming months as lenders tighten their lending criteria in the face of rising defaults, the Bank of England said today.
I’ve just bought a few shares in Marks & Spencer, which is now a third of its former price. But I wouldn’t recommend anyone else to follow suit.
