Hi Copperroad and all, It's a good point. Resources in...

Hi Copperroad and all,

It's a good point. Resources in particular but the market generally is now rolling over / suffering severe losses depending upon where your portfolio is weighted.

Losses in one area of a portfolio e.g. iron ore & energy leads to adjustments in other areas. Risk positions need to be reassessed and retrenchment back to blue chips / dividend payers / cash is the result and fear of further losses takes hold.

Margin calls in some parts of the market can then affect sales of shares in other, unrelated parts of the market.

This is exacerbated by the carry trade unwinding as USD flee the falling AUD.

Bottom draw time for many investments now and ensure you have enough cash / cashflow not to become a forced seller as things deteriorate - which I have a feeling they will for non cash flow, non producing, non dividend paying resource stocks.

Cheers
John