He was a good guy that Mr P - very astute as well.
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Our old friend Hussman reminded us last night that - Valuations are the main driver of long-term returns, but the main driver of market returns over shorter horizons is the attitude of investors toward risk],
And many are now a lot more risk adverse and won't be buying if down days are here for a while. Need keen buyers to start a turn around if we are indeed in a big correction.
Ties in with what Mr P said in those posts KW linked to.
Can't be a bad day ...pumpkin patch up a few %
The markets may well bounce sharply later today or later this week, but I will not invest anything at this stage. Severe technical damage has been done to almost every market around the globe. Most people have had no chance to sell out yet and those sellers will cap any bounce. Some markets are down 5% from their peaks; some are down 30%. I don't try to predict the next few months but if there are more severe sell-offs, followed by repeated failures to break the lows of those sell-offs, then I would start piling in 2-3 months for the usual end-of-year rally. But that's a big IF.
Glad was busy with other stuff on, didn't pay much attention to daily trade. Not a bad thing after all!
Not expecting any great moves tomorrow either, might be another lower day again. Brighter on wed perhaps??
Fph almost up. Must be a good reason. No doubt we will find out on Thursday.
http://www.cnbc.com/pre-markets/
China market now down nearly 9%. Dow Jones futures off nearly 500 points.
Just imagine what losing 9% of your portfolio's value in a single day would feel like...you'd have a bloody bad headache that's for sure :eek2: