Will The Stock Market Crash in 2008?

It seems to me, as a person who follows these things, that the stock market is not really sure what to do at the moment. One day it goes up a hundred, the next day it is down a hundred. The fundamentals of the market are very strong however the credit crunch is hanging over it like a dark satanic cloud, so how will the stock markets of the world perform in 2008?

I am a very positive thinker and am also a risk taker. I strongly believe in the concept of risk and reward and am a willing investor of stocks and shares. I am currently investing into various areas of the world on a monthly basis. This strategy is known as pound cost averaging and is very popular in these turbulent times. When unit prices fall you are able to purchase more units for your monthly premium etc.

At the back of my mind is the realisation that a stock market crash could be imminent and for that reason I am keeping in reserve quite a large amount of money which I will invest if such an event takes place. I am somebody who likes to invest on the stock market in the aftermath of a dramatic fall as I believe that most of these sharp declines are as a result of an over-reaction and because of panic selling on the part of novice investors.

If there is more bad news on an economic front such as a deepening of the credit crunch or a series of profit warnings from some of the major companies on the index then share prices may well fall. A major terrorist atrocity may also lead to a stock market crash. These are situations which could well happen and is the reason why I am keeping some cash back.

As already stated I am a positive person and actually believe that the stock market will end 2008 around ten percent higher than where it began at the start of the year. The market, in my opinion, is strong and robust enough to with stand the current problems and historically does well in the years when Americans vote for a new President.

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