this is a credit crunch folks. The central banks have been throwing everything including the kitchen sink to stop the slump, but they're previous policies will ensure that the problems continue- from lax lending standards by financials. The market can have all the bounces it wants but medium term, financials are heading down, hence the reason why i own none and recommend to others to hold none also -IMO. BNB has proved this recently. Banks have risk managament you ask? My a%^, they got caught up into this mess like the internet stock frenzy together that further pushed and encouraged by shareholders who also wanted a piece of the action. Watch the yields fall on the banks- this should prove it. Risk management is just a word they use to suck in investors - i.e look at ANZ and opes- a total joke---- there was no due diligence here at all, and so what else is out there?. The internet days saw paper profits wiped out - mostly what was gained anyway.. but this will be much worse, people have actually purchased assets here that will be worth much less in the near future on top of having to pay top dollar to service a loan on these falling assets. Thats gotta hurt big time... this thing will eat into spending then into the economy. Ouch. Im not a natural pessimist but you have gotta be serious here- this will last a while.
I continue to hold commodities though - especially gold. I still see gold stocks having their day, but near term they will probably have some pain.
While bernanke is at the helm, the US dollar will continue to fall. He has proven in the past that that is his mission. Doesnt matter what he says, his actions in the past speak louder. The change of stance has come on the talk that the US dollar could lose its reserve status - 10yrs ago this would have been unheard of- now they are in damage control. Here come the US baby boomers retiring, i wonder how they will pay for that? Maybe the printing press hey?
