Stock markets around the world have taken a
collective hit in response to the latest beating of war drums, as the U.S. ramped
up its preparations for a full scale attack on Syria. Another major factor affecting
the American market in particular, whose index has slumped 4 percent below last
year’s highs, is backing off by the Fed from their recent purchasing of assets.
The gloomy news hasn’t deterred Tony Harris
Senior Vice President of Equity Trading at Softbank CIBC International. His investments,
he says, are safe in the long-term and this sentiment may be confirmed as
stocks jumped again in response to latest news the U.S. could be having second
thoughts on Syrian action.
“What we see currently is further economic
development. There’s a lot of naysaying going around but the fact is we are at
record highs in the stock markets and we don’t expect the economy to fail to
return……for the first time ever!”
Harris is not fazed that stocks may take a
dip as the Federal Reserve reigns in its asset purchase policy having spent
billions on a monthly basis propping up the economy. “Previous experience has
shown that as the Fed winds down its monetary injections the market will bounce
back, as we saw in the late nineties.”
He shared a similar positive outlook
towards Syria, “The global markets are traditionally thought to suffer with
rumours of war. The same could be said of China’s economic health…but the fact
is we are looking at a booming market.”
“My best advice,” he continued, “is to stay
relatively neutral when it comes to attention grabbing headlines. Continue
looking for investments involving companies who are going into agreements, coming
up with innovations, or who are trading cheap on the markets.”
The Senior VP at Softbank is convinced the
Dow is moving towards 20,000 within the next two years, and the safest bets are
still on the classic long-term high yield stocks.
“Trading cheap at the moment are old
favourites like Microsoft and Exxon, they will continue to grow alongside the
market. Also Apple.”
