Dollar strength is just an excuse to sell stocks. It is a symptom, not a cause. The real reason why stocks are selling off is because of “profit taking” and fear that world growth is not rebounding. There are many who believe that the sharp increases in commodities are due to the restocking of inventory, instead of real demand.
While it’s true, it’s too early to tell if world growth is back; it’s also true that there is no way of disproving it, at least not yet. I suspect we will know the answers to these wonderful questions and more, going into September.
With regards to this sell off: buying opportunity.
I know it is a ballsy move. But, until there is hard evidence that can prove China is storing rusted metals in some egregious warehouse, the dips will be bought.
Look you, it’s not time for you to die yet. Chill out, go eat some peanuts and listen to the NY Mets lose another game, in epic fashion.
As for me, I will use the 10%+ cash that I have to buy some of my favorite names, on the cheap. Right here, I like FTK, ARD and ERX, providing they go a little bit lower. In addition, I will keep my eyes open for other market disconnects, by starting new positions—if needed.
NOTE: Despite today’s meltdown, UNG is sprinting higher. I will accumulate UNG into the hurricane season and will not sell it before August.
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