INVESTING: HOW TO VIEW THE FUTURE. Reason to hope.

Byline: Andrew McNulty

INVESTING: HOW TO VIEW THE FUTURE Reason to hope This slump is new territory. No-one can confidently say when it will actually turn. But amid the slew of bleak economic and financial data, investors have started to buy again. looks at scenarios for investors during a recovery and how to invest now that the market mood is lifting WHAT IT MEANS.

Investor confidence worldwide on the rise.

This is not the time to be too timid Fears of another Great Depression have given way to the reality of a global recession. The shocks have receded, the mood among investors has lifted and world equity markets have risen sharply.

Yet the bad news continues. In the US, General Motors, the biggest carmaker, filed for bankruptcy this week. In the March 2009 quarter, GDP in the US fell by 5,7%, capping its worst six-month performance in 50 years. SA is in its first recession since 1992. GDP fell in the March quarter by an annualised 6,4%, after a 1,8% decline in the last quarter of last year.

These events may seem confusing and contradictory, and often worrying. How should investors make sense of it all? Here are three important guidelines: Take a long-term view on the economic outlook and investment; Recognise …