Imminent and severe market correction

[moXJO]

China Stocks Enter Bear Market as Index Falls 20% From High

"China follows Russia among the so-called BRIC bloc of major emerging economies to have entered bear markets."


Didn't I hear the BRIC economies were going to get us all out of this mess?

One thing that peeves me off is the dodgy numbers that come out, and the confused and conflicting media reporting. Even the RBA and IMF don't seem to have any clear idea past a week.

 

[Sean K]

Man, I am so dumb. Enlighten me....

Doesn't that graph indicate the market is back to where it was 2 months ago? Holy goat Batman! Set the Ark afloat!!

 

[Uncle Festivus]

Since weez talkin' China, tis but a bogus boom? Pity weez have all our eggs in the China basket though

http://www.scribd.com/doc/18854834/Bogus-Boom

 

[Knobby22]

Doesn't that graph indicate the market is back to where it was 2 months ago? Holy goat Batman! Set the Ark afloat!!

LOL

 

[Uncle Festivus]

Inflation.

The Oracle speaketh.......

With government expenditures now running 185 percent of receipts, truly major changes in both taxes and outlays will be required. A revived economy can’t come close to bridging that sort of gap.

Legislators will correctly perceive that either raising taxes or cutting expenditures will threaten their re-election. To avoid this fate, they can opt for high rates of inflation, which never require a recorded vote and cannot be attributed to a specific action that any elected official takes.

In fact, John Maynard Keynes long ago laid out a road map for political survival amid an economic disaster of just this sort: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.... The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

http://www.nytimes.com/2009/08/19/opinion/19buffett.html?pagewanted=2&_r=2

 

[Aussiejeff]

Doesn't that graph indicate the market is back to where it was 2 months ago? Holy goat Batman! Set the Ark afloat!!

Doh.... silly me ... I must have been looking at the somewhat precipitous trend which if continues for 2 more weeks would have that chart back to end of 2008 parity! Best to ignore stoopid developing trends then, eh?

 

[Donga]

Good grief - the conservatives in this thread keep coming out of their holes to bang away about impending doom every time an index heads south for a couple of days. Bit like the coalition with their dire predictions but no hard forecasts. In Texas they talk about such folk as wearing big hat, no cattle. So let's have some predictions before retreating into your holes again. What will XAO fall to, assuming impending and severe means sometime in the next few weeks? For what it's worth I'll forecast fairly lateral movement, between 4200 and 4500 .

 

[Sean K]

Doh.... silly me ... I must have been looking at the somewhat precipitous trend which if continues for 2 more weeks would have that chart back to end of 2008 parity! Best to ignore stoopid developing trends then, eh?

Yes, the 17 day trend is down in China. I've bought my ticket for the Ark and have rounded up a couple of guinea pigs, llamas and alpacas to go with me. The anacondas can stay.

 

[skyQuake]

Yes, the 17 day trend is down in China. I've bought my ticket for the Ark and have rounded up a couple of guinea pigs, llamas and alpacas to go with me. The anacondas can stay.

Did the bears already go in the ark?

 

[swm79]

Yes, the 17 day trend is down in China. I've bought my ticket for the Ark and have rounded up a couple of guinea pigs, llamas and alpacas to go with me. The anacondas can stay.

be sure to let the baltic dry know

 

[Sean K]

Did the bears already go in the ark?

Bears live above 3000m here, they should be safe.

 

[explod]

Bears live above 3000m here, they should be safe.

That near the old Mount Ararat kennas, maybe you can do an Orwell and go back to the good old days.

But 3000 metres high, you want the poor bears to kill emselves.

 

[Edwood]

US consumer is under pressure there is no doubt about that. I think we have to expect some shocks from that area next results season. Just my

 

[nunthewiser]

i met a 17 yr old kid today that played the ASX game at school ........

he assured me the market would hit new lows before this bear was over .. i agreed with him .........he owned a cute lil porsche and was sober so i guess he knows just as much as anyone else here

 

[knocker]

i met a 17 yr old kid today that played the ASX game at school ........

he assured me the market would hit new lows before this bear was over .. i agreed with him .........he owned a cute lil porsche and was sober so i guess he knows just as much as anyone else here

What? the end of the year? No way it will be shorter lol:

 

[nunthewiser]

What? the end of the year? No way it will be shorter lol:

that pommy beer sent ya crosseyed

Bfor bear

 

[knocker]

that pommy beer sent ya crosseyed

Bfor bear

Not the beer, the cider is the killer lol

 

[kotim]

I have attached apicutre that came thorugh in a futures forum I am part of of.

One of the groups sent it through. It is actually a very scary picture about the posssibilities that are waiting and I don't mean the bullish ones.

The size ofthe PE ratio is astounding

 

[kotim]

sorry about the picture size but what it actually is is a chart of Price earnign ratios for the s and P 500 since the early 1930's til now. You will see that with the 2nd quarter 2009 earnings basically allready reported on, the PE ratio for the S&P is at 129 which is far far far above theaverage into the late 1980's which was between 20-30 at its highest. It effectively has gone higher since the 1990's but currently it is humungus and the picture says it all, even though its small

 

[trainspotter]

https://www.aussiestockforums.com/forums/showthread.php?p=478450#post478450

Is the bigger version? With an outstanding answer as well.