silverfox

Downward Correction Could Be in Store for the Markets

the announcement coming very soon is that General Motors our infamous money buring machine is about to declare bankruptcy
All i can say for all North American tax payers is good riddens to bad rubish.
My appinion somtimes wrong is that this market will see a fairly substantial correction 20 - 30 %
I see the S & P 500 going back down to at least 800
TSX Composite probably 8000
Dow back to 7000
Sell your positions, this market is overbought

More on Declining Canadian House Prices

As a Canadian i do not beleive (our bubble) that you claim is about to pop will not be anything like the sub prime mess in America.
In any recession you see bankruptcies & foreclosures, however Canadians as a whole are not financed as deep as their American counterparts.
My daughter who has a business management degree says the majority of all business failures in Canada over the last 20 years is the direct result of mismanagement & nothing to do with recessions or boom times.

1913: The Origin of This Whole Mess

keep in mind that a lack of credit is the direct result of a lack of Bank liquidity as a result of loan defaults.

On Mar 25 11:14 AM Mr. Fusion, wrote:

> "How true. Very few economists today remember the Fed's role in inflating
> credit previous to the Depression. On the contrary, everyone, from
> Keynes to Friedman to Bernanke, believed and continue to believe
> to this day that the problem lay in too little credit."
>
> The author confuses two time periods. Before the crash, credit was
> too easy. Stocks were being purchased on margins of 10%. After the
> crash, companies could not find credit for their day to day operations.
>
>
> Gee, that all sounds so similar to today's problems.
>
> When the economy needed credit, after the crash, there wasn't enough.
> THAT is why economists blame the lack of credit for the Depression.

The Reign of Cash Might Be Over

I would just like to say thet after the strong rally yeasterdaqy i sold 100% of my stocks.
Some people would think this is foolish.
here are some points to ponder:
The cash on the sidelines is my Companies money ( no borrowed)
You tend to have a lower risk tollerance using your own money.
I believe we are yet going to see a Dow 6000 & a tsx 7000
So you ask what am i doing right now?
Watch for cyclical large cap companies
jump in when the opportunity presents itself and get out with small profits.
Large cap oil will be a good play 3 or 4 months out.
It is too early to buy now i think a correction is coming.
I also believe ( buy & hold) is dead for now.
This market could go sideways for quite some time so get used to trading.
Remember everybody got hammered in October
The good traders have their money back today.

The Facts Say Markets Haven't Reached a Bottom Yet

I beleive oil is due for a fairly significant correction here.
there is really nothing to support US $ 53.00 /barell
So if you hold any oil stoks sell now and wait for the correction.
Gold is falling off again and could go down to resistance #1 at 890
or resistence # 2 at around 830.
Inflation seems to be at bay for now.
I beleive commodities will pull the tsx out of its decline & banking in America will have to lead the rally.The tsx has don much better than the dow or s&p 500 and we can thank commodity prices for that.

AIG Suddenly Takes the Full Disclosure Route

I stand to be corrected it is 165 million AIG will payout to Executives announced March 16/2009
Somebody please shut these people down now!!!!!!

AIG Suddenly Takes the Full Disclosure Route

And to add insult to injury AIG says they will pay out 135 million in bonuses to their executives.
The American taxpayer should be furious.
call your MLA, Governor whoever will listen and scream
until the message gets through.
this is nothing short of ridiculous.

Causes of and Cures for the Economic Crisis

Be careful getting into any altercation with China,
Remember they hold the majority of Americas debt.
Tread lightly when forcing them to change their ways.

Credit Crunch: Driven by Lack of Supply or Demand?

Well to start with if you do not have a job you will not get a loan.
And the reason you do not have a job is because the companies that are laying off people are seeing reduced earnings going forward.
This simply means you have 2 choices in turbulant times.
Increase earnings or cut costs.
Consumer demand has plumeted so companies abound are shrinking not growing.
hence only those who want to consolidate need apply.

World War III: U.S. vs. China?

And we accomplished what in Iraq besides spending billions.
Some say it was for OIL!!!! (where is MR. BUSH )
Why would you go to war in the middle east for oil when your northern neighbor has more oil than all of the middle east in a stable democratic society?

World War III: U.S. vs. China?

APM: YOU NEVER FINISHED YOUR LINE
"AND THATS WHAT CHINA IS DOING"

Credit Card Cancer

The Alberts Government the only debt free province/state in North America announced last week that they will go back into debt.
With Alberts havinga 'AAA+" credit rating they can borrow money at 1% intrest.
This is while the Alberta Heritage Fund currently sitting on 16 billion cash can earn around 4% intrest.
It just makes good economic sense to borrow if your own money makes you more invested elsewhere.
About a year ago ( before the crash)i was offered 5% intrest on a 5 year locked in savings account.
This small Credit Union guarantees 100% of all deposits backed by the Alberta Government.
I deposited 50,000 into the account for 5 years.
And turned around 2 months later and took a 15,000 loan
at prime plus 1 % at the time.
this worked out to 4.5 % intrest on the loan.
Its just good economics to borrow if you in a position to implement it.
And remember borrowing cash with cash as collateral is the best risk reward you can get.

Greenspan Yet Again Blames Others for Housing Bubble

Well you can blame Greenspan for the housing or you can say should people become accountable for their actions.
We have the Banks who threw risk to the wind and give anybody a mortgage that could walk or breathe.
Then we have the buyer that in some strange twist should not have any responsability for his part in the transaction.
Lets take a close look at the Banks for creating a lending environment where nobody was refused.
And the buyer who actually thought that someone else will tell me what i can afford and their to blame when i can not afford it.
It seems crystal clear to me that the Bankers & potential buyers with big pipe dreams should all look in the mirror and do some soul searching.

Money from the Sidelines Will Determine Next Rally

Money on the sidelines will come back to the market when companies show EARNINGS
If you play the equities without checking a company out then go to broken down Las Vegas and gamble, because thats what your doing.
whatch company earnings going forward and do not be swayed by analysts reports about a 3 day wonder.
This stock market will remain volitile until the financials get a clean bill of health.
And that is probably going to take some time.
Remember money on the sidelines ( i have 60 % there now)is not earning much on the money market account but you can sleep at night.

Cramer's Mad Money - The Wal-Marts of Healthcare (3/6/09)

Play gold mining stocks again after their slide.
I think gold is dropping down to 800 - 850/ounce
then gain another position in gold miners & be patient.