The summer is traditionally the time of year when not many shares are bought or sold, and consequently, under Staceys Law a lack of activity means a decline in share values.

Why the summer slump should happen is a bit of a mystery. There is that old chestnut about going away in May and coming back to the market on Leger Day (beginning of September). But does anybody believe that nowadays?

It means an awful long holiday for professional traders if it is. Of course, all the top traders may be skiving at Royal Ascot or Wimbledon. But that doesnt bear scrutiny either.

This time we have the recession to reckon with. We might all be waiting for stronger signs that it is all over, for the end of falling employment and for a bigger easing of credit strictures.

Any road up, there is little chance of us reversing the summer trend for the markets to be idle and lose value. But I might be able to take advantage of the situation. This could be my time to buy heavily, gang. After all, sensible people buy in the sales when nobody wants to pay normal prices. And this looks like sales time.

Of course, share prices may fall even more, producing bigger bargains. But the fundamentals of many companies are strong, and big drops, in many cases, now seem illogical. Not that that precludes shares falling some more. Logic is not too common in Crazyland. But we have to work on something, gang, and low price-to-earnings ratios, as we often have now, are not to be sneezed at.

Youll note that I say, quite confidently, that I ought to buy more shares. Trouble is, I started doing that a couple of months ago, and Ive not a lot of available cash at the mo. Still maybe Ill win the lottery. God bless.