In the past few weeks I have been approached by a number of people asking me
when my next blog is coming out. In itself this surprised me as I have never thought somebody would really want to know what I think about the markets. Thank you all.
OK, let me begin by saying this is not a pretty picture in front of you.
Let me also say that if you read Dr’s blog lately about the macro situation around the world and in particular in China and Japan, I fully agree with his thought.
Let me cut to the chase – what you are seeing here is what I call The Crossroads of Hell.
Sometimes we reach a situation where no matter what you do you are screwed…
Summary of Hell:
- most global markets are already in the bear market, US pretty much the only developed market which is still holding, but crumbling fast
- commodities are in the deep bear market, super cycle is over
- bonds bubble popping in US and through out the world
- credit crises arise throughout the world (Chinese could be much worse than US)
- most economies are in recession with exception of US (really?)
- there is no safe haven asset left to run to (PMs and bonds are destroyed)
- we have currency war on our hands – real war, look at YEN, REAL, AUD, CAD – bizarre
What do you do at this juncture? If you are a trader with the high risk profile – you short or you
day-trade and don’t hold anything overnight.
Most people cannot do that.
So my advise to you – stay out of it, out of it all. Sitting tight on your position or sitting tight on the sidelines is no different to me and requires amazing discipline and stamina not to give in
to addiction of the trading. Be strong, sky will be back to blue, I promise you that.
Happy not trading.
PS: Spend time putting together your shopping lists, watch for strong plays in weak tape, control your emotions