Stocks will continue to take more beatings, any rally is non sustainable in the bigger picture! Falling 400 points is nothing, take 20 % fall for first cover, another 20% , another 10% your 100% retracement point is being raided what are you going to do? Cry? Come on tell me how many people are trading commodities futures? How many are considering taking on GOLD? Is it as populated as the stocks? You can short it but are you the central Banker? Wouldn't you like to arbitage on the valuation differences!! Dont follow the herds or stand being slaughter!! With a debased dollar, i would throw it for GOLD, yen is making a comeback from carry-trading uncertainties , take a look!!! Would the common denomination change in the future? would you still want to hold fiats compared to actual bullion and physical currency, it is finite so bear in mind the valuations is going to rocket.
Demand for Gold did not shrink but increased over the past few months, prices are not seen as sold down but being manipulated, safehaven, take a longer term perspective. If you don't believe me, in two years compare the DOW to Gold price. More and more fiat money are being created, more and more liquidity is being pumped up, the more inflated money is going to be, the more debased a currency the more likely i would abandon it. I mean what are reserves for in the first place when u don't need to defend your currency!
I am not asking you to jump into the pool blindly, do some research and do not attempt to time markets! After all, it is not part of investing to time a market, and it is even heavier priority not to lose insight and control over self when investing. At least not like cramer, bu...Bu... bu.... BUll S***!!! This could be the start of another round of bull in commodities, people keep in mind that Oil has retraced a lot, it could not be justified in surrounding nations that produce oil to keep selling at such a low price, OPEC will cut supply to boost pricing and curb too much supply, are you still shorting it? Lean hog, Soy, CPO, Sugar, Natural Gas are still waiting to bounce, if equity is not the safehaven, Hedge funds will raid the Commodities......Defecits, Debt that are haunting them(cheaper dollar pays debts cheap), dollar pumping, shorting of gold by CB cartels.
and they say this :
-The U.S. government is now on the hook for future Fannie (FNM)/Freddie (FRE) losses. Total losses will depend on the severity of the housing/credit debacle, but it isn't a stretch to imagine losses in the $1 trillion range.
-The U.S. budget deficit in August alone was $112 billion.
-The U.S budget deficit is forecast to be $407 billion in 2008 and a record $438 billion in 2009.
-The $438 billion for 2009 does not include any funds used to "conserve" Freddie or Fannie or any new fiscal stimulus package, and it doesn't account for the full cost of the Iraq War (let alone any new incursion into Iran, the Caucasus region, or Pakistan/Afghanistan).
-About the only thing supporting GDP growth in the past two quarters has been net exports, thanks to the falling value of the dollar. The recent strength in the dollar is likely to blunt this tailwind.
-The risk of competitive currency devaluations is very real as every country battles for a piece of the shrinking pie of investment and consumption spending.
-The Fed continues to swap high-quality Treasury securities for garbage securities.
-U.S. unfunded liabilities range from $50 trillion to $95 trillion (depending on the assumptions used).
"Even the intelligent investor is likely to need considerable willpower to keep from following the crowd."
- Benjamin Graham
" currency that has taken the test of time , none other than gold/silver"
- who Leaps ?
- A failure to keep the insurers, what more after banks
- 1999? imagine the dollar index at 76 how abt gold n oil?
- Now they start to tell you this
- Look at GATA they have the best Vids and writings
- Panic? no gold rush yet
- is it a correction or manipulation; i mean how high dollar can go?
- Beware mortgage application were high, but why are they cheap?
- deleveraging
- 1600?2200?what is the value of gold
- Hey don be so sour! mistakes are made by man! we are all men(hyperinflation?)
- Hedge funds involved big time, no wonder Bernake sat them down Sunday(HF or CB cartel?)Pls note the -ve correlations dollar to gold, and how sell downs that dont see fundamentals and pricing!Must see this
** at this time Crude oil looks like a round curve waiting to head up? only worries are slowdown in demand as people will not spend more**
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