LPD 50.0% 0.3¢ lepidico ltd

Hi Jasox.(Sorry for the deal but having probs with HC or my...

  1. 763 Posts.
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    Hi Jasox.
    (Sorry for the deal but having probs with HC or my PC)

    Too true, I've experienced a few of these panics over the course ofthe years, they've all been overdone. Once the hysteria has passed -theprofessional traders for the institutions- start building rebuilding theirportfolios with the cash they have on the sidelines just for these occasions.



    Also, eventually they move some of their profits they are making in the bond andtreasury markets to the equity markets as the yields on equities (and values) become very attractive vis a vis fixed interestrates. Just look at some of the blue-chips, they are being murdered today (and over the last week or so).



    The severity of the collapse in prices suggests to me that theturnaround will take the form of a 'V' shaped rebound not dissimilar to thecollapse in 1987 (Black Tuesday Aust.).I've been trying to locate in myrecords a chart of the All Ords in that period,but I've had a few different PCs since then and I broke my back-up hard-drive alittle time back so I cannot provide the info graphically.



    Anyway, I think the sell-off is greatly overdone, so taking my ownadvice; the turnaround is likely to be sharp and rapid when it comes.Cheers all - we'llsoon see!!



    To the last points you make:
    (1)
    Property?
    (2)
    Crypto?
    (3) Gold?
    (4) Surely not destined to be 'dead money' in banks.



    The money, where is it being stashed, my bet is, if not gold; themost certainly the short-money markets. 30 day, 60 day and 90 day money notes,bonds short-term, where the cash can be accessed quickly, whilst there, andinterest rates keep falling the asset price rises and can be sold on thediscount market for a profit; or held to maturity with little risk.


    (1) and (2) are lock-in situations, and also (2) too high risk'



    (3) Gold maybe, but unlessyou buy the physical bullion bars (liquidity issues arise, can be sold butsomewhat difficult). Alternatively, buy on the futures market, but it'sanother level of sophistication as it's very volatile and high leverage issues.

 
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