The media and the panic is PART of the cycle. Admittedly, it's chicken and egg stuff - is everyone talking about it and it then makes the news, or did the news get everyone talking about it.
The way I look at it, if people in Australia yesterday morning hadn't been talking about it then no-one would have sold yesterday morning.
Until we get two or three nights in a row of "bloodshed on Aussie market" then the mums and dads haven't been shaken to the core and therefore the bottom isn't in as we haven't yet exhausted the retail panic.
I find it hard to believe that's in some way manufactured by the "big guys" to buy cheaper, but more that it's the very definition of the peak of fear and a signal to start looking for a completely oversold and exhausted market ie the bottom. (Note I did not say start buying, but looking for a signal to do so).
Then, in hindsight which is always 20-20, the risk-averse somehow got "conned" into selling at the bottom, and the "brave" were somehow complicit in the con.
I don't think so. It's simply that until we're all talking about it it doesn't make the news, and until it makes the news the maximum number of investors haven't been informed that the market has actually sold more like $240 billion in the last month, hence the final round of selling is those who take the least amount of notice of their investments, and their panic is at its highest when those most informed the panic is over and rational heads are returning.
End of soapbox. :-)
PS: While I'm here, a huge thanks to HLL for your daily info - I always read mate but rarely post.
