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Friday, May 11, 2012 12:14:14 AM
Watch for QE3 as the bottom to this drop in oil, gold, silver and stocks
from arabianmoney 09 May 2012
The summer shake-out is upon us with a vengeance. Assets priced for a vibrant recovery are being repriced for stagnation or decline. Sell in May and go away never looked a more appropriate stock market adage.
How low will financial markets go? Well this certainly looks to be a fair sized correction if nothing else. You could envisage $1,550 gold, $25 silver, $90 oil and a Dow Jones a thousand or two points lower.
QE3 cavalry
Then presumably the Fed will finally roll out QE3 money printing and that will rally markets again for a while. It is a pattern we have seen before over the past few years.
Therefore the ArabianMoney investment newsletter next month will be looking hard at what to buy when markets bottom and subscribers could be in for some interesting opportunities
Sometimes it feels as though all that is holding up stocks, or preventing them from falling further is the Facebook IPO. So many hands are in this cookie jar it cannot be allowed to fail.
But that does not take us more than a week or so ahead. Things could get pretty unpleasant after that.
For the list of global nasties is getting very long while the bullish case is increasingly bordering on the hilarious side of wishful thinking. Where are those US jobs? Rising US house prices?
How about the eurozone crisis? What about Spain? Greece? Is a socialist French president good news? How about the Chinese slowdown? What does that mean for commodity prices?
Our best advice is to use this opportunity to stock up on precious metals at prices that the coming money printing just guarantees to be far too low to last for long. The news flow is actually still very bullish for precious metals.
Demand fundamentals
The Indian government has just performed a U-turn on the proposed doubling of duty on gold jewellery imports. Then consider the news that Chinese gold demand in Q1 was up six times on last year, and China is all set to become the world’s largest market for gold this year, ahead of India.
Taking advantage of short-term sell-offs to buy the right assets for the next phase of this economy is what keeps ArabianMoney talking late into the night!
JER1
from arabianmoney 09 May 2012
The summer shake-out is upon us with a vengeance. Assets priced for a vibrant recovery are being repriced for stagnation or decline. Sell in May and go away never looked a more appropriate stock market adage.
How low will financial markets go? Well this certainly looks to be a fair sized correction if nothing else. You could envisage $1,550 gold, $25 silver, $90 oil and a Dow Jones a thousand or two points lower.
QE3 cavalry
Then presumably the Fed will finally roll out QE3 money printing and that will rally markets again for a while. It is a pattern we have seen before over the past few years.
Therefore the ArabianMoney investment newsletter next month will be looking hard at what to buy when markets bottom and subscribers could be in for some interesting opportunities
Sometimes it feels as though all that is holding up stocks, or preventing them from falling further is the Facebook IPO. So many hands are in this cookie jar it cannot be allowed to fail.
But that does not take us more than a week or so ahead. Things could get pretty unpleasant after that.
For the list of global nasties is getting very long while the bullish case is increasingly bordering on the hilarious side of wishful thinking. Where are those US jobs? Rising US house prices?
How about the eurozone crisis? What about Spain? Greece? Is a socialist French president good news? How about the Chinese slowdown? What does that mean for commodity prices?
Our best advice is to use this opportunity to stock up on precious metals at prices that the coming money printing just guarantees to be far too low to last for long. The news flow is actually still very bullish for precious metals.
Demand fundamentals
The Indian government has just performed a U-turn on the proposed doubling of duty on gold jewellery imports. Then consider the news that Chinese gold demand in Q1 was up six times on last year, and China is all set to become the world’s largest market for gold this year, ahead of India.
Taking advantage of short-term sell-offs to buy the right assets for the next phase of this economy is what keeps ArabianMoney talking late into the night!
JER1
I am not a professional and my opinions are just that, opinions.
Please do not buy based on my recommendations, do you own DD.
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