Thursday, Jul 12, 2007
Not sure he is correct here
The Telegraph: Why I find the doom and gloom rather reassuring
Call it perverse, but I find all this gloom and doom reassuring. The euphoria which traditionally marks the peak is noticeably absent. The market is climbing its old friend the "wall of worry".
There will be no parabolic phase to the DJIA this time. That was done in 2000 by the Nasdaq. The bubble is in debt and not in stocks.
Posted by sold 2 rent 1 @ 02:23 PM (206 views) Add Comment
6 Comments
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1. sold 2 rent 1 said...
"The 1987 crash and the fallout from the collapse of the Long Term Capital Management hedge fund in 1998 were frightening periods for investors to live through but both merely punctuated ongoing bull markets."
Yet again we see the view of expanding debt to infinity to keeping the economy and stocks growing
2. sold 2 rent 1 said...
"Clearly, investors need to make a distinction between companies that will benefit from strong worldwide growth (miners, for example) and those which are exposed to rising interest rates (retailers spring to mind)."
The mining companies will be the last to fall. Once the consumers in the west stop buying goods from China, there will be no need to urbanise 20m chinese every year.
3. paul said...
Haha. Someone else who feels detached from the complex reality claiming "everything will be okay". I remember saying the same to a struggling colleague many years ago. He later said my comments really irritated him. Rightly so, because he was shed a week later, and I was simply naiive.
City Editors have a remarkable habit of being detached from it all too. Think about this - why does he need the prefix "City" as part of his title - to make his opinions seem more valid perhaps?
4. Scott said...
For God sake Paul, you have to have city after your name to make you look good. City lawyer, city architect, city banker, they all sound good compared to village idiot and farm boy.
5. Philld said...
And the fact Wall St is currently nearly 200pts up after naff sales data and warning its CDOs market / credit squeeze could have serious implications is not overly enthusiastic or parabolic? I think either we seriously underestimated how well the markets are at the minute or we have to accept that people have gone lunatic on the shares!
6. sold 2 rent 1 said...
Philld,
"And the fact Wall St is currently nearly 200pts up"
This is the final exhaustion phase that will surely mark July as a peak.