Having survived in the market for a few decades been through a...

Having survived in the market for a few decades been through a few booms and busts.

The sub prime crisis beginnings were enough for me to liquidate what could be described as a blue chip superannuation portfolio and turn my resources fund firmly to gold stocks. A credit crunch is something of a negative sleeper which few would have experienced or understand.(Economy of '63 under Menzies is the last full credit crunch)

The current crop of talking heads which many are oft to quote really are comparative lightweights. Kohler,the economists from CBA/AMP would fall into this category IMO. Saul Eslake has the intellectual capacity.

Was questioning the move after the BHP-RIO scenario but now very much ahead.

Main mistake with the theory so far? Took shares in GFF (Goodman's) at a reasonable discount to the then prevailing market when the major shareholder bailed. Should have stuck to my guns/theory but I thought a nice defensive stock such as a food company should have limited downside! BS, down around 20% in a few months......at least gold and interest rates have provided a positive outcome to fund performance.

Having set the seen, you can even loose money on defensive stocks!

Have we hit the bottom? Would like to think so but credit crunches do not disappear overnight-it takes a while to re-alter the thinking of the banking communities' credit committees. THe plus is the prevailing hunger for resources/energy, the negative is the likelihood of enforced slow downs for project development through finance shortages in the short term and maybe 'demand' in the medium term.

Besides, no can really lay claim to being able to pick a bottom!

Safer bet is to wait for stronger direction from the market over a reasonable period of time-not day to day fluctuations. The current direction remains bearish just in case you are unsure!LOL

Good luck. You may need some patience (or a gold stock or two???)

Cheers,TAS