I keep wracking my brain for snapshots of the situation last time that QE1 was coming to an end. Loads of OTHER supportive money was flooding into the markets and the economy at that time (full blown TARP, corporate welfare for 2Big2Fail's running into the hundreds of billions, etc...)
And for about a week, it all seemed to work, the markets jogged down just a little, but not bad, some up and down days...
And then it started to go straight down, just like Rat's charts in the QE article show.
THIS time there is little support other than QE, and I am thinking that we might see a dramatic swoon immediately upon the end of QE2, which will fall at the end of this month. The market turmoil we are looking at now might just be the preamble.
What does this mean for our REE and other mineral plays? Well, we just might NOT have time to wait for the July announcement for GW, for instance. Or the IAEA report for Lynas, either.
Those who have NOT looked at Rat's 2 very excellent articles pertaining to the end of QE - and its potential effects and links to so many important topics - I would suggest you review them, soon.
My personal situation is currently a mixed approach. I have withdrawn from many other investments into cash, but I am still holding overweight positions in GWM and particularly Lynas. I am essentially gambling that Voldemort and his Death Eaters (including his "right hand" Wormtail Bernanke) will see what is happening and push QE into play regardless what anyone else says.
IF that happens, the current prices might be something very close to a bottom and good investments.
IF it does NOT happen, we will have to be agile and move quickly to avoid the crash, IF there is one (lots of "IF's" right now, too many)...
Disclosure: I am long Lynas and GWM.