Uncle Festivus: The correction has, I suspect turned a wee corner, for the short term. I see the LSE is already up over 80 points, and it is not yet midday (plenty of time for me to be proven wrong). So long as it closes ahead, then all should be good until the next correction - do they seem to be about 4-6 months apart? I am sure we will get more.
The carry trade has resumed and, despite volatility, there is good international monetary supply and inflation is quite well controlled internationally. The miners are especially strong, and there are improved commodity prices. GDP in Australia, UK, Asia and the general Eurozone is strong.
I suspect that we are in the midst of the 3rd stage of a cycle with several years to run and, understandably, some corrections and volatility from time to time. They present buying opportunities. A lower re-ranking of financial stocks, especially non-blue chip, is perhaps in order.
However, with the superfunds, commodity demand and significant Australian resources, mining and assoicated industries must be very promising. With increased geopolitical uncertainty, Aussie mining stocks (from producers such as RIO / BHP to OXR) and even quite speculative stocks, may appeal far more than those in Asia, Africa etc. There are also some blue chip international stocks that are perhaps undervalued.
With the fuel concerns, both UGC companies (which currently generally involves quite speculative juniors such as Mee and CXY) and agricultural companies (at least those that can supply potash / nitrogen fertilizer - eg NUF and IPL) must have good growth prospects. I have left aside uranium about which much has been written by many, but tend to think it is a time for considering those with good licence prospects or production ability, if not producers such as Pdn). Associated engineering industries must also have good growth prospects. That is not to undermine petroleum companies, but value is hard to predict.
I think, perhaps, that it is a time to select the sectors more carefully, rather than to rely on general market growth and that resource and defensive will both offer good potential for growth. The former, for reasons stated, and the later becuase they have been undervalued / largely ignored for several years and will now attract conversative money. Finanaical sectors can be carved off, to a degree.
Finally, although we are all avid stock watchers, to differing degrees, there are still many who have not yet jumped into the market, whereas in the 1987 / 2000 etc busts there was very widespread public participation in the market.
All of course IMO. I disclose interests in some but not all of the stocks mentioned and many different stocks could be substituted. No recommendation is intended to be attached to them.
The carry trade has resumed and, despite volatility, there is good international monetary supply and inflation is quite well controlled internationally. The miners are especially strong, and there are improved commodity prices. GDP in Australia, UK, Asia and the general Eurozone is strong.
I suspect that we are in the midst of the 3rd stage of a cycle with several years to run and, understandably, some corrections and volatility from time to time. They present buying opportunities. A lower re-ranking of financial stocks, especially non-blue chip, is perhaps in order.
However, with the superfunds, commodity demand and significant Australian resources, mining and assoicated industries must be very promising. With increased geopolitical uncertainty, Aussie mining stocks (from producers such as RIO / BHP to OXR) and even quite speculative stocks, may appeal far more than those in Asia, Africa etc. There are also some blue chip international stocks that are perhaps undervalued.
With the fuel concerns, both UGC companies (which currently generally involves quite speculative juniors such as Mee and CXY) and agricultural companies (at least those that can supply potash / nitrogen fertilizer - eg NUF and IPL) must have good growth prospects. I have left aside uranium about which much has been written by many, but tend to think it is a time for considering those with good licence prospects or production ability, if not producers such as Pdn). Associated engineering industries must also have good growth prospects. That is not to undermine petroleum companies, but value is hard to predict.
I think, perhaps, that it is a time to select the sectors more carefully, rather than to rely on general market growth and that resource and defensive will both offer good potential for growth. The former, for reasons stated, and the later becuase they have been undervalued / largely ignored for several years and will now attract conversative money. Finanaical sectors can be carved off, to a degree.
Finally, although we are all avid stock watchers, to differing degrees, there are still many who have not yet jumped into the market, whereas in the 1987 / 2000 etc busts there was very widespread public participation in the market.
All of course IMO. I disclose interests in some but not all of the stocks mentioned and many different stocks could be substituted. No recommendation is intended to be attached to them.
). In fact media frenzy over any sort of drop in the market by the uneducated is seen as yet another reason to stay out. 
