In the Green Room

The Green Room, apparently, is where the world’s biggest investors meet quietly between themselves, away from all the others attending the World Economic  Forum at Davos.

The suggestion of our BBC News Channel journalist at Davos is that, as they watch the world stock markets slide into recession they won’t be panicking like almost all other investors. As the world index has already slid 20% many of them will already be buying now — “at the bottom”.

I beg to differ.  The slide in share prices is relatively unimportant.  It’s only a symptom.  Too many aspects of the world’s economic system have been known to be too much out of kilter for too many years.  The general condition is now worse than prevailed just before the 2008 Crash. I think the situation is now so serious and the stock markets will slide to much deeper levels yet that even the long-term Green Room investors will not be buying yet and might well be quietly selling.

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