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The official "ASX is tanking!" panic thread

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Dow finished +85 points overnight, so the ASX probably won't tank today.
Marcus Padley is an interesting read this morning on investor temperament, I wonder where we'd all place ourselves on the scale. I guess we all have our moments!
http://www.smh.com.au/money/road-to-ruin-shouting-swearing-and-slamming-phones-20111104-1mzlw.html
Road to ruin: shouting, swearing and slamming phones
by Marcus Padley, SMH, November 5, 2011

"..In brief, the breakdown is that people come in three general temperaments, each with two extremes (''unpleasant'' or ''pleasant'', ''arousable'' or ''unarousable'', ''submissive'' or ''dominant'') and the eight various combinations of those three pigeonhole investors are exuberant, dependent, relaxed, docile, hostile, anxious, disdainful or bored.
Turns out the relaxed (pleasant, unarousable and dominant) and the docile (pleasant, unarousable and submissive) are the most suited to investment success and the rest, anyone unpleasant or arousable, are at a disadvantage..."
Read more: http://www.smh.com.au/money/road-to...ming-phones-20111104-1mzlw.html#ixzz1d3bFqn1W
 
Logique said:
Dow finished +85 points overnight, so the ASX probably won't tank today.
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Indeed!

European finance ministers pledged to roll out a bulked-up rescue fund next month, leaving Greece and Italy on the front lines until then in the fight against the debt crisis.
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http://www.bloomberg.com/news/2011-11-07/eu-to-roll-out-bigger-rescue-fund.html

More printed moolah for all Too Big To Fail entities!

So, comforted by the knowledge that the powerful EU ministers have all the answers, let's party like there's no tomorrow... *wheeeee.....*
 
skyQuake said:
And how is the EMH relevant?
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Because there's a few people posting on this thread suggesting that nothing more than a company's share price need be known, thus implying that everything relevant to the company is already built in to the share price.

I beg to differ and base my investment strategy on that difference of opinion.
 

HC must have their automated bots repeatedly voting. That's a fair turnaround from last week.
 
HC has a ludicrous amount of adds and 'waiting time'.

Such an annoying way to view threads, I don't know why anyone would vote for them.
 
young-gun said:
! if a company was always priced exactly as it should be no one would ever make any money moves would become predictable and trading would be come easy
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They won't always be priced exactly as they should be, At times they will be priced well below and other times they will be priced well above.

Knowing an estimate of their fair value helps you buy at prices with a high degree of certainty that their prices will rise and also avoid stocks where there is a high degree of certainty there prices will fall.
 
Two things I found somewhat mystifying about todays rally on the ASX.
First. How could the exiting of a prime minister with no clear succession plan in place be positive for markets that hate uncertainty more than bad news!
Second. What difference does a priminister make to Italian bonds that crossed the threshold at about a yeild of 6ish?
Rembering Greece is chicken feed compaired to Itally which has the potential to do more damage than Lehmans.
Yippie lets rally.
Looks like the trillion dollar bailout fund is going to have to find funds rather quickly instead of being a plan to be funded by - 'we're working on it'
 
You underestimate how much of a joke Berlusconi is. He fell asleep twice at the G20 summit last week. A country cannot possibly have even a chance of riding through the financial termoil Italy is facing with someone like that at the helm. Pretty much anyone is better.

Bond yields however have continued to rise, now over 7% Italy is speeding towards disaster unless something happens very very quickly.
 

Reached 7.25% overnight.

http://www.bloomberg.com/news/2011-...s-defenses-as-region-s-contagion-worsens.html

Train wreck a-comin' down the line...... Whoooooot!

PS - Is today the "official" start of GFC2?
 
Now the media has one more country to blame. (like it wasn't there already)

Prepare to hear a lot more about Italy!

I wonder if it's is the start of a sharp reversal and down trend, or if the up trend remains in tact (short term)

I wouldn't be surprised if the DOW is flat tomorrow!
 
Chasero said:
Now the media has one more country to blame. (like it wasn't there already)
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These issues didn't happen last night yet the whole reaction thing both up and down simply lets the pros. suck money from the market.
 
Wysiwyg said:
These issues didn't happen last night yet the whole reaction thing both up and down simply lets the pros. suck money from the market.
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Exactly. The Italy issue has been around for a while but of course it makes for a wonderful trigger point when bond prices rise above 6%. Start loading up on shorts, then see the inevitable barrage of media in a panic over bonds at 7% yields and bam, $$.

All I can say is chugga chugga chugga CHOO CHOO!!
 
Wysiwyg said:
These issues didn't happen last night yet the whole reaction thing both up and down simply lets the pros. suck money from the market.
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Funny you said that because I have a feeling that the foreign "Big Boyz" armed with there HFT bots and freshly printed ultra-low interest USDs are systematically sucking money out of the Aussie markets. They can bid up the market and the unsuspecting Aussie based fund managers, (with billions of our super funds), thought the market is rallying and they go for it.
It happened again yesterday - the market staged a mini rally on the back of crumbling Italy. The Big Boyz already knew in advance what's going to happen.
 
The European elites who took their countries into the single currency have a lot to answer for.
 
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