Like most people who take an interest in macro and/or macroeconomics I find this all a bit nuts but that in no way whatsoever means this madness is going to stop anytime soon. Insane price action across the board right now is probably going to force policy makers' hands sooner rather than later not least of all because of popular unrest at the policy mix right now.
In China, the bubble rolls along nicely, and for more on this Pivot Capital has some good commentary
. Tuesday's close provided a bit of an opportunity to get some risk on before the madness started last night and it looks like it isn't stopping anytime soon. Attempts to run something other than a long risk only book have been met with just reward - Gold shorted at 1021 on the Dec contract has been stopped out just as AUD was.
These conditions remind me a lot of mid August - October 2007 in Hong Kong where no price was too much for risk. As a response, the best thing to do seems to be to take down leverage, focus on liquid stuff only and ride it up and get off the horse quickly if and when it turns.
Most people of my background spend their lives studying industries, long term trends, deep value etc etc. This market has NOTHING to do with that. Unless we are seeing our dollar crisis early (and the bond market doesn't think so) then this too will pass.
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