I think the mountain of evidence that exists that the world economy is completely stuffed takes the guess work out of the markets.
Over the next 12 or so months, I see many of those who are simply trying to talk up the market, drop off the various threads.
In the meantime, some will continue to ramp or otherwise talk the market up.
The sad reality is that no amount of ramping here on Hot Copper or anywhere else for that matter is going to change the fact that we are about to go into a world wide depression the like of which has not been seen for 70 years.
Just take a look at all the evidence.
Try and look at the evidence as dispassionately as you can. Put your "hopes" to one side and truly ask the question. Will the markets recover from here?
I think, given the mountain of evidence that all the indicators point to a continuation of the bear market and that it will gather a pace in the coming months.
Commodity prices will continue to go south. Sure there will be rallies but as you saw recently, those rallies will be short lived and replaced with more selling as sentiment rules.
Risk and debt are the new four letter words of the economy and in turn, the markets.
The "rescue" of banks in the US and UK will be shown to be hopelessly inadequate as many banking institutions have simply underestimated their exposure to bad debts.....others simply have no idea of the extent of the bad debts.
Unemployment is on the rise and Australia will soon be in a recession if it is not already. Personally I believe we are in a recession without the two consecutive terms of negative growth. WA and QLD are propping up the Australian economy and that will imo run out soon. IMO by the end of the year or in 2010 the world will be in depression with Australia following suit close behind.
THE ABOVE IS NOT FINANCIAL ADVICE AND NOT DESIGNED TO BAIT, TROLL, FLAME, CREATE AN ARGUMENT OR OTHERWISE CAUSE OFFENCE TO ANY PERSON WHO SO-EVER IS ENTITLED TO DISAGREE WITH MY OPINION AS STATED IN THE ABOVE TEXT
