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Hello Crazy Galoots,
There's a common feeling that the run up to Christmas is often a good time for shares. Now this time we've had a lot to worry about what with Northern Rock (NRK), a credit crunch, rising oil prices and so on.
But I can really see no reason why the rest of the Yule run should be any different to the usual brisk period for shares rising.
For one thing, human nature dictates that we get into quite a good mood for Christmas. Ok, the tail end of the festivities may fray a few tempers, with more domestic murders being committed. But on the whole a mood of optimism rules between now and the 25th.
This feeling is probably hard to shake, even in the more dire economic circumstances. For one thing, there are few shares bought or sold in the last few days, as big traders head off early for the family festivities. And in my experience, when volumes are thin, shares tend to rise in price, though not always by any means.
There is a tendency to buy shares in firms which do a faster trade at Christmas than other times of the year. These include High Street chains, internet shops, drinks companies and restaurant and pub chains.
The reason for this is that share-shifters see what looks like a very busy period and start to believe that the rush of customers is the start of something big for 2008, rather than what it is - the traditional short-lived Christmas rush.
So my policy, this year, as always, is to buy in the run up to Christmas - and sell quite of few of these new shares early in the New Year. Rocking on!
To find out more about Malcolm CLICK HERE
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