``Economies around the world are clearly slowing,'' said Jeremy Beckwith, London-based chief investment officer at Kleinwort Benson, which oversees the equivalent of $13.1 billion. ``We will see substantial earnings revisions. I think people are getting fearful now and will get more fearful.''
http://www.bloomberg.com/apps/news?pid=20601087&sid=aD.7KTPhLzR4&refer=home
I wrote not long ago about how I felt the fear was growing in the markets and had much more room to go before it reached what I call the all out panic mode. The panic mode will be the stage where the fear grows into an irrational state that is unbalanced where we truly enter a period when there seems to be no hope left in finding a bottom to the markets.
It's reported today by some that the mining shares are over sold and were due for a bounce because the bad news is already priced in. That is a falsehood. As the fear grows so will the dead cat bounces as those who bottom fish buy into the " the bad news is already all priced in scenario." As the fear grows so too will the lower lows be tested as new lows are set. It's a BEAR MARKET in a growing recessionary period giving birth to a possible depressive era in world markets. That is what reality is becoming in world markets.
They say this recession will not be as bad as the one in 2000 that lasted until 2003. Really? A lot of people thought the sub prime crisis was going to be no big deal as well a little over a year ago as well.
I will state this fact once again. The energy sector is in dead cat bounce mode. It is doing what it's suppose to do, it's testing the new lows and in a bear market those new lows will not hold, they will give way as the markets continue to slide. People will take those profits, for there will not be sustained buying power in a growing bear market condition.
Some call this doom and gloom. It's no different than when one writes about all the growth in an expanding economic atmosphere. It's just the inverse of that right now as the markets of the world continue their constriction, retraction, sell off to lower lows.
The FEAR is building and that fear will grow to all out panic and hopelessness, that is the point where the true bottom will be set in place world wide and it will not happen any sooner than that point in time and that is going to take more time than most want to accept.
V.
3 comments:
Sir DWRD
are you out there? Did you make money on COIN?
SK, any other long positions besides GSPG? still in UNG for the remainder of the year? thanks.
There is nothing other than commodities that I would buy now even though I'm sure there are many successful trades to be made. I suck at trading but some of the guys here know their shit.
As far as companies that I think will do extremely well during the next few years besides GSPG, it's Sangamo Biosciences (SGMO).
I've actually lightened my position there only because I know the entire market is going to tank and take SGMO with it so I figured it would be best to steer clear of everything for now.
SGMO has a lot going for it and if they are successful, it will easily be a 20 bagger at some point. Amazing things are going on there.
I do own some other pennies based on what some have recommended to me but not real companies as far as I'm concerned so I couldn't recommend them.
I am going to buy some SLV tomorrow because metals have been pounded down recently as institutions have been forced to liquidate everything and there's been tons of manipulation in the metals sector that can't continue forever and metals prices will eventually soar.
SLV is something I'll trade for a few points but won't hold for long. I have begun to buy some physical silver too as added protection against a potential collapse of the dollar.
GSPG should do real well over the next few days with their 43-101 coming on Tuesday so if you are considering it, now is the time to strike.
I expect a nice run ahead of the release and if the release beats expectations, it should continue for a day or two afterwards.
Good luck.
SK
Post a Comment