Bargain hunting?

[shinobi346]

Re: Bargin hunting?

yup. margin loans being called.. market being flooded with shares..

banks losing lenders... banks tightening who they'll lend money to...

banks boosting interest rates of their own..

ones gonna flow to another from this. Until the US stabilises I dont think we've seen all the real damage from this.

 

[-merry]

Re: Bargin hunting?

gg. danger with using margin loans i guess... oh well.. i guess its time to sit tight and hold on till the dust settles... makes you wonder how many high risk or uninformed investors there are in the market sometimes... playing with margin loans despite early warning signs of troubles of interest rate hikes and problems with the US sub prime mortgages

 

[waz]

Re: Bargin hunting?

Hi Merry

Looking at that article

exports to america in 2006 was 287.8bil
out of a total of 968.9 bil

that makes 29.7% of all chinese exports go to america.

i dont know where u got your 6% figure from

nearly every country in the world has at least 10% of their trade with america.
and most around the pacific rim will have a figure of 20% plus.

also, a majority of these exports are consumer goods. not resources.

 

[numbercruncher]

Re: Bargin hunting?

And Chinas biggest single customer and the largest retailer in the US Walmart just posted a profit warning ....


Only thing i find a bit baffling so far is that Chinese stocks havnt tanked, i suspect that will come soon enough though all considered.

US futures lower so US market will probly tank a bit further tonight, some Inflation data being released tonight to may have an effect .....

Interesting market place atm

 

[-merry]

Re: Bargin hunting?

Hi Merry

Looking at that article

exports to america in 2006 was 287.8bil
out of a total of 968.9 bil

that makes 29.7% of all chinese exports go to america.

i dont know where u got your 6% figure from

nearly every country in the world has at least 10% of their trade with america.
and most around the pacific rim will have a figure of 20% plus.

also, a majority of these exports are consumer goods. not resources.

You're right... my bad, i got 6% coz i was looking at "US Exports" thinking it was the figure for China exporting to the US. And the thing is the resources exported from Australia to China is used in producing the consumer goods. But my point from earlier on was basically me trying to understand why the resource sector has been hit so bad because I could not identify a strong link between Australia's export of resources to China and the sub-prime mortgage problem in the US. I mean sure the US imports a lot from China but like I said before it's not like all of China's exports are going to the US, not all of Australia's exported resources go to China and not all the resources exported to China is being used to produce consumer goods for the US. The resources is also being used for urban development etc... At the moment, what I'm thinking is people are pulling out cause
a) they've been trading on a margin loans
b) interest rate hikes and future interest rate hikes are putting pressure on the interest they have to repay
c) they have no idea what is really going on and are freaking out because the heavy weights have shed some blood in the financial sector and have pulled the index down so they're selling and waiting for everything to be calm again

anyone have any idea how much resources Australia exports to the US? is it significant? Demand for gas and oil might decrease with the decrease in disposable income but i wouldn't expect demand for these resources to change significantly seeing as the demands for these resources are relatively inelastic for now

 

[Wysiwyg]

Re: Bargin hunting?

do you mean too many traders borrowed money to trade and now that interest rates are going up they cant keep up with repayments so they're shorting?

Everyone I know that do not have money directly invested in the sharemarket are continuing on as normal.Aussie lives don`t change that much when the seppos have a loan default problem.(maybe there is a hidden real issue)The scaremongers are out in force on the forums though.They may be right for a while.:chainsaw:

 

[wayneL]

Re: Bargin hunting?

Everyone I know that do not have money directly invested in the sharemarket are continuing on as normal.Aussie lives don`t change that much when the seppos have a loan default problem.The scaremongers are out in force on the forums though.They may be right for a while.:chainsaw:

The majority always carry on as normal. Even in the great depression, 70% of people still had jobs, some got rich from the depression. Prices are set, economies fortunes are made and lost on the fringes.

Keep a close eye on sentiment, because it will change. It's subtle, and the change is gradual, so you have to pay attention.

Bear in mind also, folks carry on as if nothing is wrong, even if insolvent.

 

[-merry]

Re: Bargin hunting?

Everyone I know that do not have money directly invested in the sharemarket are continuing on as normal.Aussie lives don`t change that much when the seppos have a loan default problem.(maybe there is a hidden real issue)The scaremongers are out in force on the forums though.They may be right for a while.:chainsaw:

by traders I meant people who trade shares on the ASX : and i guess you gotta feel sorry for the day traders who took up margin loans to day trade coz they'll be in a real pinch right about now =/

 

[wayneL]

Re: Bargin hunting?

by traders I meant people who trade shares on the ASX : and i guess you gotta feel sorry for the day traders who took up margin loans to day trade coz they'll be in a real pinch right about now =/

Why would that be merry?

 

[nomore4s]

Re: Bargin hunting?

by traders I meant people who trade shares on the ASX : and i guess you gotta feel sorry for the day traders who took up margin loans to day trade coz they'll be in a real pinch right about now =/

I'd imagine most daytraders would be loving the markets atm

 

[-merry]

Re: Bargin hunting?

Why would that be merry?

interest rates going up, margin loans might be called if sub prime mortgage in the US worsens, share market taking a plunge coz of panic selling and various other reasons mentioned earlier, day traders normally trade for short term profits, the share market in reds, there is pressure of interest repayments (which means they need to make enough to cover interest) and we have no idea how long this bloodbath will last... correct me if i'm wrong but.. i'm still quite new.. all i've got is a whole bunch of stuff i've picked up from trading, reading stuff and what i've learnt from my accounting and finance degree (not much really )

 

[professor_frink]

Re: Bargin hunting?

interest rates going up, margin loans might be called if sub prime mortgage in the US worsens, share market taking a plunge coz of panic selling and various other reasons mentioned earlier, day traders normally trade for short term profits, the share market in reds, there is pressure of interest repayments (which means they need to make enough to cover interest) and we have no idea how long this bloodbath will last... correct me if i'm wrong but.. i'm still quite new.. all i've got is a whole bunch of stuff i've picked up from trading, reading stuff and what i've learnt from my accounting and finance degree (not much really )

It sounds like you may be confusing traders and gamblers

 

[wayneL]

Re: Bargin hunting?

I'd imagine most daytraders would be loving the markets atm

Exactly, manna from heaven.

interest rates going up, margin loans might be called if sub prime mortgage in the US worsens, share market taking a plunge coz of panic selling and various other reasons mentioned earlier, day traders normally trade for short term profits, the share market in reds, there is pressure of interest repayments (which means they need to make enough to cover interest) and we have no idea how long this bloodbath will last... correct me if i'm wrong but.. i'm still quite new.. all i've got is a whole bunch of stuff i've picked up from trading, reading stuff and what i've learnt from my accounting and finance degree (not much really )

Any serious and profitable daytrader will be trading short as well as long. In times of extreme volatility, it is the daytraders who do better than anyone else.

Lots of people in the markets like to sh!tpot daytrading for various psychological reasons. Don't believe them, it's all BS and far removed from reality.

 

[nomore4s]

Re: Bargin hunting?

Exactly, manna from heaven.


Any serious and profitable daytrader will be trading short as well as long. In times of extreme volatility, it is the daytraders who do better than anyone else.

Lots of people in the markets like to sh!tpot daytrading for various psychological reasons. Don't believe them, it's all BS and far removed from reality.

Unfortunately I'm not set up to daytrade. Not enough experience and plus I can't trade at work. I also can't trade short either atm, so I'm really only sitting on the sidelines atm (1 open trade atm)

 

[-merry]

Re: Bargin hunting?

Exactly, manna from heaven.


Any serious and profitable daytrader will be trading short as well as long. In times of extreme volatility, it is the daytraders who do better than anyone else.

Lots of people in the markets like to sh!tpot daytrading for various psychological reasons. Don't believe them, it's all BS and far removed from reality.

are you by any chance a daytrader? wayne? :

 

[wayneL]

Re: Bargin hunting?

are you by any chance a daytrader? wayne? :

I prefer to swing trade, but will daytrade when appropriate.

 

[-merry]

whats a swing trade? combination of day trading/buy & hold?

 

[Wysiwyg]

At the present devaluation rate of stock some have gone from way oversold to near worthless.Sifting sifting .... there is money to be made.

 

[chops_a_must]

Re: Bargin hunting?

hahaha... nah, by staple goods i mean goods that are purchased regularly out of necessity. For example, canned food (tin and aluminium) and its not just iron ore companies that are affected, the SP most companies are being affected (e.g. nickel, oil, gas, coal, gold, copper etc.. ) by the subprime although the majority of the fall in the index is due to the financial heavy weights e.g. MBL, CBA losing a lot of ground. I think when people see the that the index is going they automatically think oh crap, everything's going down but i think generally the fall in the index is related to the companies in the financial sector... well it was initially anyway... now its spreading like a virus

I knew what you meant... just trying to get a laugh...

 

[nomore4s]

Re: Bargin hunting?

I knew what you meant... just trying to get a laugh...

lol, Chops you're getting smashed with your attempts at comedy tonight