The market seems to be selling-off on the back of limited bad news imo, apart from the dollar that is.

If you can hold your nerve and apart from any short term requirements to offload poor performing stocks, I have a couple!!, my advice would be sit tight. This does not have the feel of the tech(mining!) bubble at all. Difference being there are a lot of good fundamentals, unlike in 2000 when there were a lot of over rated nothing companies.

http://news.bbc.co.uk/1/hi/business/7552336.stm

Page last updated at 10:14 GMT, Sunday, 10 August 2008 11:14 UK

UK economy 'worse than thought'

Many UK manufacturers face an 'uncomfortable' time, the CBI says.

The CBI, the UK's largest employers' organisation, has warned that the UK economy is deteriorating faster than it previously thought.

There was "no doubt that the mood has darkened in the last two or three m...............

http://www.thisismoney.co.uk/news

Bank to give gloomy outlook for the UK
Simon Duke, Daily Mail

11 August 2008, 7:46am

The Bank of England is expected to slash its economic forecasts for this year and next amid signs that inflation is spiralling out control.

Gloom: Inflation is making interest rate cuts impossible


In this Wednesday's quarterly inflation report, Governor Mervyn King is likely to warn that the credit crunch and collapsing consumer confidence are inflicting real damage on the economy.
But any hopes of an imminent fall in borrowing costs are set to be dashed, as King may signal that rampant food and energy price rises have left the Bank's hands tied.

King's gloomy prognosis will intensify fears that a severe downturn over the Summer will push Britain towards recession.

Lehman Brothers economist Peter Newland said: 'A downward spiral between tightening credit conditions and falling demand is now a reality. A technical recession of two quarters of negative growth is more likely than not over the coming 12 months.'

The Bank, which left rates on hold last week, is tipped to warn that the inflationary menace is on the rise.

King is also likely to take a red pen to his previous forecast for growth in economic output of 1.5pc this year.

The move would be a huge blow for Chancellor Alistair Darling, who is relying on growth of between 2% and 2.5% this year to balance the government's books. Official figures due on Tuesday are expected to reveal that inflation has jumped to a 16-year high above 4% - twice the Bank's 2% target set by the Chancellor.

With factory gate price rises set to jump to more than 10pc this week, Britain's biggest business lobby admitted that the 'mood has darkened in the last two or three months'.

Richard Lambert, head of the Confederation of British Industry, predicted growth prospects for 2009 and 2010 would be 'no better than anaemic'.

The fall-out from rampant price rises and the credit crunch is spreading fast.

The number of companies expecting to make staff redundant has risen to 27% from 22% over the past three months, the Chartered Institute of Personnel and Development will warn this morning.

Worth a watch and listen :


http://news.bbc.co.uk/1/hi/business/7766057.stm


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