best stock in the universe, page-178

mongombolo

Hehehehehe - ..."MACD kiss of death" ... I love it!

Just forced myself to suffer the pain of listening to Morgan Stanley's Gerard Minack bear & a like-minded rep. from Citigroup on Lateline Business. Interesting that only doomsayers seem to appear on the program atm & once again no request from Ali Moore re their trading positions.

Minack forcefully predicted deep 'Anglo' recessions, 3500 for the XAO within 2 years, amidst 7+% unemployment, more massive writedowns & more bank[ruptcies] - including in Oz. His Citigroup mate thought the XAO would be back to 5750 by December but then slump to Minack's figure.

When queried re this not tallying with PE ratios Minack retorted to the effect that they are not really there [uhhhh, did he mean that our companies' financial statements & earnings guidance are wrong?]. His mate chipped in that Citigroup has just re-rated about 100 ASX stocks - I presume downwards]. They maintained that even if PEs are OK atm they will soon vaporise due to loss of earnings [IMHO they would know too, having been aware of approaching doom & still watching investors hard-earned capital in MS & Citigroup also vaporise].

Minack went on to say that having previously been bearish he is changing into a resource bull [uhhhh?]. However, he said he thinks that other sectors of our economy will fall precipitously [I am not sure that he was aware that they've already done that - he talked of 55% but many of our non-resource stocks have already been clobbered that much or more. Even CBA fell ~45% & is still down ~40% & we won't labor what happended to AFG, MFS & CNP].

Minack went on to say that the US is about to start a second bear slump of another 15% & would endure a deep recession ending with the DOW on its knees in two years time.

It became obvious to me that these guys must know a lot more about Australia than our RBA & our governments. Our guys think the economy is real strong. And, gee whiz, at least one of them whose intials start with GS is hell bent on smashing rampant confidence in his leadership of the noble fight against the inflation dragon.

And someone pays these people to do these things; unbelievable!

4YIO - NFA