Is anyone actually buying?

[prawn_86]

Our entire Economy thanks to the Liberal party is based on a hole in the ground and the World knows it, I think Australia has the potential to be spanked harder than any other Western economy if there is a world wide slowdown or recession.

Im not too good with macro economics, but shouldnt this shield us to some extent?

The Chindia story isnt slowing down for at least 2 years, and even then resources will be needed, especially if the world moves towards cutting greenhouse emissions. Materials for electric cars, wind towers, solar panels etc etc will still be needed.

 

[Nyden]

Im not too good with macro economics, but shouldnt this shield us to some extent?

The Chindia story isnt slowing down for at least 2 years, and even then resources will be needed, especially if the world moves towards cutting greenhouse emissions. Materials for electric cars, wind towers, solar panels etc etc will still be needed.

Very true, thank you Prawn. I needed that fundamental slap in the face to calm me down

Market actually seems to be recovering a little?

Hey, don't criticize Australia's hole in the ground guys! All of my stocks need that

 

[numbercruncher]

Im not too good with macro economics, but shouldnt this shield us to some extent?

The Chindia story isnt slowing down for at least 2 years, and even then resources will be needed, especially if the world moves towards cutting greenhouse emissions. Materials for electric cars, wind towers, solar panels etc etc will still be needed.

Yes rollout of Infrastructure will always create some demand, but its consumerism backed by cheap easy debt thats driven this boom, 70pc of the US econmomy is consumerism - 9t worth - see a marked downturn in that which is looking increasingly likely, No one yet knows for sure the result, but present indicators dont look so good.

 

[cuttlefish]

I'm still bullish on gold so topped up on a couple of those today. Already quite loaded up on gold stocks. The flight to cash in a proper rout will probably hit everything hard initially - especially the unwinding of margin funded and debt funded holdings which are the ones that cause panic selling and massively oversold situations - so could be more to come on that front.

I think the aussie market yesterday and today has taken things pretty hard though, it must be factoring in a continuing bad week for the US.

 

[Real1ty]

Im not too good with macro economics, but shouldnt this shield us to some extent?

The Chindia story isnt slowing down for at least 2 years, and even then resources will be needed, especially if the world moves towards cutting greenhouse emissions. Materials for electric cars, wind towers, solar panels etc etc will still be needed.

While you are right and those nations won't be standing still the fear is what effect will the US consumer have on them, especially China.

We have a lot of new mines coming on board and increased production from existing mines, so if there is a slowdown in the US and this has an effect on China, then metal stocks rise and prices fall.

By historical averages, the prices will still be good, but they will not be as good as what share prices on these miners have been evaluated on.

Not to mention the cost of these miners borrowing and the higher cost of everything involved in capex and energy.

just my 2c

 

[chewy]

Believe it or not DOW futures are actually showing UP at the moment - some small comfort.

And yeah there are a few stocks I would be buying today if I had any cash left

 

[The Mint Man]

I just watched the market go from 140 odd points down to 110 points down in a few minutes, hopefully people are seeing bargains and the recovery is starting

 

[waz]

AFG is looking very good today, it does have other forms of making money besides Rubicon.

Currently its sitting on a very very low current PE ratio. The lowest I've seen for any Australian investment bank for a few years.
Ofcourse its possible that next years profits can halve, but even with that its still cheap.

 

[Who Dares Wins]

I got some more TTY.

Someone said a while ago that with a 30% increase in ore prices next year they would be worth $2.00 not to mention an expected resource upgrade soon, so I feel at $1.21 today I had to get a few more.

Also looking to pick up some IBG, about 84 cents currently down from $1.10? a week or two ago. I think theres more to come on the IBG story.

Resources will continue everyone, I'd like to qoute a piece from a RIO report dated 26 Nov 2007 - " it is important to recognise that the US is now significantly less important in world commodity demand than it was just 5 years ago. Our analysis suggests that even a sharp slowing in the US economy would have only a small impact on Chinese and Indian economic growth and consequent demand for commodities ".

Most of us know this anyway right? So why the sell off?

 

[chewy]

Yeah I agree TTY is a good buy today. If I had spare cash i'd pick some more up as well as CVN.

 

[Real1ty]

I got some more TTY.

Someone said a while ago that with a 30% increase in ore prices next year they would be worth $2.00 not to mention an expected resource upgrade soon, so I feel at $1.21 today I had to get a few more.

Also looking to pick up some IBG, about 84 cents currently down from $1.10? a week or two ago. I think theres more to come on the IBG story.

Resources will continue everyone, I'd like to qoute a piece from a RIO report dated 26 Nov 2007 - " it is important to recognise that the US is now significantly less important in world commodity demand than it was just 5 years ago. Our analysis suggests that even a sharp slowing in the US economy would have only a small impact on Chinese and Indian economic growth and consequent demand for commodities ".

Most of us know this anyway right? So why the sell off?

The US slowdown hasn't been the ignition for the sell off it is the credit crises.

Once people start to become more risk adverse, they then start to relook at other things.

Credit market + US slowdown at the very least means you should re evaluate.

Maybe not sell, but at least re evaluate and tread warily.

If all this blows over quickly, those who bought at bargain basement will be very happy but if not........

 

[Rainmaker2000]

I've been a little busy this morning.........I bought a heap of Phone Zone but that's not really affecting by falls........unfortunately, many of my stocks are green today, as opposed to yesterday.

I'm keeping my eye on JST for a convenient re-entry.....

I'm really just hoping the correction takes more shine of PTM......that's my Rainmaker..hehe

 

[trinity]

I just watched the market go from 140 odd points down to 110 points down in a few minutes, hopefully people are seeing bargains and the recovery is starting

Hopefully up for a slight recovery ... we are now down by -73

 

[The Mint Man]

yes, it would seem that the recovery was starting but its not over till the fat lady sings... see what happens by 4pm.

 

[numbercruncher]

Future Fund PPT at work ?

 

[steven1234]

Will we see selling into the rallies or will people start pulling their sell orders as they beleive the bottom has hit?

Its been a few days down now, i expect most worried about margin calls have sold out by now or will do so on the way up today.

 

[Real1ty]

Since the market has been volatile we have had a lot of late day sell offs.

I'm not buying back in yet anyways, so it doesn't effect me but be wary of these late day sell offs.

I'm not talking about in this correction but all though our volatile period.

 

[Mofra]

Resources will continue everyone, I'd like to qoute a piece from a RIO report dated 26 Nov 2007 - " it is important to recognise that the US is now significantly less important in world commodity demand than it was just 5 years ago. Our analysis suggests that even a sharp slowing in the US economy would have only a small impact on Chinese and Indian economic growth and consequent demand for commodities ".

Most of us know this anyway right? So why the sell off?

In fundamentals, yes. In the reality we are interesting (and therefore the resultant market share price) then not quite. The XJO level of foreign ownership has climbed to over 40% currently, and it appears some of these foreign investment banks/hedge funds etc. may be forced to sell if the conditions in the US continue to deteriorate.

 

[The Mint Man]

wow..... only 45 points down now, thats quite a move:bonk: why the big move??
I tell you what people.... either way, I am drinking up my JD tonight:bier:

 

[Kimosabi]

Our entire Economy thanks to the Liberal party is based on a hole in the ground and the World knows it, I think Australia has the potential to be spanked harder than any other Western economy if there is a world wide slowdown or recession.

We also just happen to have the highest ratio of Debt per Person on the Planet, but we shouldn't worry about debt after the greatest worldwide credit expansion in history...