This weeks blog looks over the car crash of the markets over the last week.What does this holds for the punters & pro's! A decent correction often leaves private investors perplexed and fearful, I'm not going to brush off this aggressive move as nothing more than the mechanics before a significant drive in forming new highs however I would suggest that before people run to the door! they actually contemplate where things stand on each pocket of economic data released.
Quantitative easing, low crude price and a falling baltic dry index.... What does it mean?
Well QE is speculated as the booster jab the globally community needs and Europe seem to looking for their next fix, The USA has stalled a little as it seems to have handed over the belt of global supremacy which is now up for the taking, leaving Putin rushing to pass a bill preventing women having tattoos in the small of there back.
Low brent means that things will be cheaper to ship however the commodity linked industry has to accept that its not all '' good in the hood '' never worry to much as pretty much oil to gold the money will insist on capitalising as the mexican stand off between collapse of physical gold and collapse of the global stock markets will ensure volatility,fear and international worry... I shan't be shaking like a shitting dog just yet but do concede that keeping some powder dry '' just in case '' never did anyone any harm. The big financial Christmas run will commence bringing temporary relief if nothing else. Rumors of finacial meltdowns are closely followed by the planet being infected with ebola by sept 2016 leaving 70% of the global population dead. Should the I.S rule the world or Swine flu emerge I'll make sure I have a good Christmas by drinking,smoking and spending a few bob on loved ones.
Folks lifes about managing the good,bad and ugly, the current run of form will be no different than the last correction. For those following the BDI then its back to consistent levels of a decade ago, were likely to see some consolidation and continuity of the world's shipping lanes. '' Nothing more worrying than that in my opinion ''
My old mate Tom Winnifrith sticks the boot in on another aim company that has been around for a while and currently at a loss ratio of a quarter of its value. However Tom takes DickHead Dave at face value. I mean please.........
He has a relevant point and this is one of the primary reasons I believe Tom is such a valuable commodity to private investors, Quindell,Blinkx and Sefton are all but a few companies that Tom and co. have been absolutely 100% correct about. '' Is he right to highlight failings in a company that has yet to perform and is he also right to remain steadfast in his defence of all that is dear to him including DD '' whilst we don't agree on everything including his recent coverage on Patrick Cheetham of tertiary, for the record since Cheetham came into the rat race of aim over 1/3 or 700 companies have gone to the wall! Tym has not. I won't argue the corner but will do after I return from our meeting next week. I do respect the meaningful relationship Tom and I have (I would say friendship but clearly a southern posh knob and a heathen northerner could never have anything in common) having said that he has my unequivocal support on the slaying of unethical publicly listed companies...
We can talk about companies all we like but when a bear raid ensues then sometimes its best we board up the windows and hide behind the tears of a clown. Perhaps the brave & foolhardy could try and buy the hammered down stuff, keep some powder dry and try and evaluate the impact damage/limitation to each piece of news...
A guy pulled me up about my foul language this week for which I'm sorry!
Exclusive - Aussie Investor (Probably RRL) kicks off with twitter heavy weight BigGib
All the best
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( These are but opinions and not a statement of fact )