Satch
MB Enthusiast
- Joined
- Nov 24, 2003
- Messages
- 3,508
- Location
- Surrey
- Car
- S211 E320Cdi Avantgarde Estate & Toyota Land Cruiser
The only surprising thing in the current market "correction" all this is that has taken so long to happen but it is not a "natural" correction. We live in interesting times
There is pressure on the sell side but the bulk of this "crisis" has been manufactured by the ECB, to be more precise Trichet, who is alleged to have wound everybody up with scary statements for the express purpose of scaring EU states, in particular Germany, into supporting yet another ECB bond buying spree but this time for Spain and Italy.
Look on the positive side: markets always go way too low following such events especially if (i) the retail investors (who depressingly always tend to go in when markets are on the way up or already too high high and then panic sell/redeem funds when they dip) start to bail out (they have) and (ii) short sellers pitch in (they have)
All of the professional money has largely already been "adjusted" or hedged out appropriately because they expect a sudden bounce, dead cat or otherwise.
You can tell that because there is already an ocean of cash just waiting for the bottom, so much that it has resulted in some banks and custodians imposing negative interest (i.e. a charge) for holding it:
http://www.ft.com/intl/cms/00487faa-beba-11e0-a36b-00144feabdc0.pdf
So the Satch Vulture Fund is already hovering, ready to hopefully pick off cheap stocks in decent companies with decent fundaments. (I will tell you after I have purchased them.....
There is pressure on the sell side but the bulk of this "crisis" has been manufactured by the ECB, to be more precise Trichet, who is alleged to have wound everybody up with scary statements for the express purpose of scaring EU states, in particular Germany, into supporting yet another ECB bond buying spree but this time for Spain and Italy.
Look on the positive side: markets always go way too low following such events especially if (i) the retail investors (who depressingly always tend to go in when markets are on the way up or already too high high and then panic sell/redeem funds when they dip) start to bail out (they have) and (ii) short sellers pitch in (they have)
All of the professional money has largely already been "adjusted" or hedged out appropriately because they expect a sudden bounce, dead cat or otherwise.
You can tell that because there is already an ocean of cash just waiting for the bottom, so much that it has resulted in some banks and custodians imposing negative interest (i.e. a charge) for holding it:
http://www.ft.com/intl/cms/00487faa-beba-11e0-a36b-00144feabdc0.pdf
So the Satch Vulture Fund is already hovering, ready to hopefully pick off cheap stocks in decent companies with decent fundaments. (I will tell you after I have purchased them.....