I honestly don't think we will hit bottom until the gold: Dow ratio hits single digits likely 7 or 8.
this is an excellent point... doing some back of the napkin calculations has my conclusions leaving me in awe ... but what's really shocking is that the revalations may in come true. if gold goes up, it will be most likely fast and furious....
it's gonna be ugly if the downtrend in general markets continue without any bull rally and without testing any support will most likely create a true capitulation in the markets.
here are some more of my thoughts - a chunk of my net worth has been sliced right off... it's painful to see those kinds of digits go buh-bye
I think we are witnessing only the beginning of a 1 or 2 year long bear market that will prove more detrimental to the society at large since a much bigger portion of peoples retirement are invested in the markets unlike the previous bear markets and recessions
this is really, really a dangerous time to be an investor in the markets... trading with a lot of protection to the downside seems to be the plays of the day.
except for my trading in and out of SRS, my port looks like someone took out back and shot it up and down....
a couple of big news over the weekend- hedge fund redemptions are creeping high putting more stress on the brokerages (or now, the new owners, banks).... these guys are levered like mad especially in commodities... might see another leg down in gold/silver. but who knows... gold should hypothetically increase everytime dollar is diluted, so the markets aren't working to historical data
another biggie - Italy is latest to announce problems with their banks liquidity.... European collapsing before our eyes is the US$'s saving grace....
lots of unintended consequences with the bailout approved on friday... despite it being much needed to get the banks rolling again, the regulations imposed by legislation will slow down the process of spilling into the economy... granted, the catch 22 is that the money won't be as frivilously spent as if it were only a few wall streeters drunk like sailors....
anyway, now that the media can stop pouncing on the bailout news, we can turn our attention back over to all of the news we all have been overlooking - unemployment, notice of defaults, foreclosures, are all increasing. manufacturing down, Wages still stagnate, etc... I hate to say it- but the wheels are falling off faster than anyone expected . coming to grips with the reality of the entire realm of the markets is difficult but it's happening
I think the media has finally realized all of its nonstop coverage of the bailout hoopla makes it feel like the wild wiley coyote hanging out in midair after running off the cliff and muttering under it's breath: "oops...."
not sure about its validity, but it seems realistic- I recently read only 20% of the USA's population qualifies for obtaining mortgages with the new regulations in place... if these guidelines continue, then I don't think we will have seen the end of the real estate market spiral down for quite some more time... maybe another year
I'd hate to sideline the cash... I pulled the trigger and am meeting with a potential partner and money raiser to work on a new biz plan to acquire large investment properties. I am probably going to shy away from commercial/retail/industrial unless someone has a convincing argument or even a compelling deal but instead will be targeting apartments ala steveO Volluci style.... a lot of fear has spilled into all aspects of the real estate markets making the current environment pretty compelling to at least throw out some really low ball offers based upon a whole new set of metrics unseen in decades
sorry for being defragmented.... my feverish kids have had me up for a couple of nights in a row.
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