AJX sell off, and it will bounce !, page-116

I have to agree, I personally think the market is a bit irrational at the moment.

Yes historically a drop in oil suggests a drop in demand and drop in economic activity, but there are more factors driving this in the current economic shift. As oil has dropped from circa $100 a barrel to $30 a barrel, demand has not dropped that much. This is more a case of oversupply by the oil producers that see that demand for oil will be outstripped by other alternative energy sources as there is a shift to cleaner energy over the next 20 years or so. Those with oil supplies are just trying to convert the commodity to cash whilst there is still demand which is driving price down. As a result based on historic economic theory investors are scared. Yes China has room for concern and we may be in for a bouncy period but there are some great growth sectors and stories out there also being drowned out.

Yes there will be oil companies fold due to capital investment based on higher oil prices and potential lack of foresight on market forces. Banks may take a hit from this fall out also from investment in oil companies and service companies to these sectors, but there will be winners.

Bit like AJX with a move away from brominated flame retardants. If the brominated flame retardant producing companies don't keep up with the mix and diversify to safer options they get dragged down. AJX will be a clear winner from this shift IMO.

I am one of those crazy people seeing this as a buying opportunity. Even moved my super to a more aggressive mix. Crazy, stupid, smart investor....will have to see but will be an interesting year and could be some bumps but I think the short sellers a playing some games at present and deliberately fueling fear.