Spread Bettors predict poor 2009

Everywhere we read, the economy news appears to be worsening. As unemployment rises, house prices fall and companies suffer, and even go out of business like MFI and Woolworths. Companies are cutting back on production, making redundancies and taking longer Christmas holidays. This is a worldwide problem.

A sign of poor sentiment is often depicted in the way that spread bettors predict the movement of the markets. Those who had the foresight to use spread trading to sell commodities this year will be the few who made a fortune this year as oil dropped by two thirds and even the usually safe bet of gold has fallen by 20 per cent.

Those who spread bet on the financial markets would have done well to trade on the 30 percent fall in the FTSE and other financial markets worldwide have fared worse.

If you believe how the spread bettors are trading, house prices should fall until 2010 with up to 30 percent price reductions still to come, a huge drop from their peak.

As the world’s pockets have suffered, spread trading is the one area where those who know their markets will have made a fortune in a very short space of time.