bear markets, page-2

All the analysis of a bear market will come after it is finished as hard to define.

I believe Australian market should have simply had a correction due to slowdown of some strong economies globally and inflationary factors. Seems many though go by charts and emotion and leave facts out of the equation all together.

So emotion will decide and fear can create a lot of economic stress in spite of itself. You may notice the main losers of this mess we are in are in fact investors and not home owners or petrol purchasers!

Often when markets slump there is another cycle to pump money into..eg property, gold or high interest bearing deposits. None of these look attractive yet. When they do usually means there is real trouble brewing. Also AUD is high so ask why people keep buying it?

During these periods there can be periods of over reactions both positive and negative and adjustment periods. Just when you think the world is ending it suddenly looks bright again and when you are making so auch money you think you will be rich next week it will all come tumbling down.

I still think shares will offer the best investment vehicle but will depend on whether people can stop their addiction to bad news that has little do with us.

Iron ore is is a bull market all of it own. Though future earnings will be tempered by higher costs high grade deposits in Pilbara are the #1 address.

So perhaps a bear market blimp in a period of massive economic growth in emerging economies just has not been documented yet.

So after all my waffle, sorry have not got a clue!