The Rally Has Ended
Wolfie — April 21, 2009, 9:26 am
There’s been much talk of late about seeing better times ahead, green shoots of recovery or market bottom over the last couple of weeks. Don’t believe a word of it. The bear market rally of the last month or so is running out of steam, liquidity injections are starting to run dry and fundamental problems in the derivative markets remain. Yesterday’s drop of 3.5% in the indices mark the start of the next cyclic adjustment, this is the start of the final slow descent into financial hell, fasten your seatbelts because the worst is yet to come.
Filed under: General
Wolfie, how you keeping?
What will you do to fasten your seatbelt?
Me, brushing up on my sea fishing, growing my own, and am learning about edible plants and mushrooms. The less I rely on money, the better. Ain’t owned a car for 7 months and feel I can easily live without one now. I’m learning to live as part of a community. That means giving as well as taking.
I’m under no illusion that most people are completely oblivious at what is about to occur in the markets, and the social breakdown that will ensue it. I do believe that those with a survivalist approach, coupled with a community spirit will endure the hardships.
You sure know how to cheer a girl up!!!
Joking apart it should be quite obvious to everyone that we are heading for difficult times. The warning signs have been up for quite a number of years…
You’re right – I don’t believe a words of it.
I’m merely marking the end of the recent bear market rally, also casting doubt on assertions that the worst is behind us. Certainly the “Credit Crisis” is over but we are heading into the next phase now.
I’m not a fan of the survivalist ideal, I think it’s a bit unrealistic considering the resource depletion of the UK environment. Perhaps a technological/social/economic shift would help but there isn’t a shred of bountiful wild left here.
You sound bloody confident about this, you’re even making me think about selling.
I don’t subscribe to this view of looking for the ‘bottom’ of the index. I reckon some stocks hit their bottom during or immediately after the Lehmanns CDS auction, some in early March 09, some are yet to bottom and some will not survive the recession.
I’m going to hang onto my Man Group stock (bought with my life savings at 198.5p in March) and stick my fingers in my ears and hum to myself.
Please don’t make any decisions on account of my points of view Steve, the markets are highly volatile and unpredictable and while I am often right the spectre of political intervention can always throw a spanner in the works. Bear market rallies are a common facet of market behaviour and I think we’ve just seen one but I am making a market generalisation and individual stocks will always buck any trend.
No need to worry, stop-loss is in place and even if it does stop-out I’m beating the measly deposit rates on offer down the high street already this year.
No way am I leaving it in the bank to be pillaged by bankers and politicans.