I'm more surprised by the Treasury rally than the equity swoon. Short treasuries I can understand, but long treasuries? At 4.5% with inflation just shy of 3% and the dollar in a down trend?? Two years are so much the better investment. I agree, short bonds offers better odds.
Hey mr. Perma Bear. The return on treasuries barely beats the "official" inflation and only saves half the real inflation. So no smart money will be sitting in Treasuries. The fact is that this very overdue correction is nothing but a scare to get rid of the weak hands and easily manipulated sheep. Also a play on leverage, kinda like bucket shop style. Cash is a guaranteed losing proposition. Treasuries are not much of an answer. Look, realistically, about half, if not more, of the equities are overpriced garbage. But there is a large number of quality names which translate into quality assets. So while I would never buy GOOG, I will always be a buyer of cheap miners, big pharma, proper renewable energy names, big-agri/GMOs, chemicals, defense/prisons and some other REAL asset equities. So really, a sideways market that will eventually turn into another bull. And in case it's hard to figure out, any money out of emerging markets will go into either Europe or US, as the "safe" choice with decent returns. US has always been the better choice.
ok, was just interesting seeing ES opening higher... while big selling in Asia was already under way..
Hydro, I'm only a bear until we finish this selloff and see consolidation. Are there great companies that are getting sold off now? Yep. Are they worth buying now? I don't know. Everything is getting hit. I was very bullish last June. I am not a permabear. p.s. - You're right. At least 1/2 of all equities are overpriced garbage. Probably more. I, too, will be looking to buy the cream of the crop when this correction is finished, whenever that may be. Also, cash is a winner now. 5.5% plus negative loss of (x) in equities = 5.5% + x.
I can see the future. I will be forced to scalp some "over sold" equities and spend the rest of the day listening to the Ivey leagued talking headed "horses asses" telling the masses how great a buy the mkt. is. I am a technical trader, therefore, i see doom on the horizon.
Wow! Red across the board! http://finance.yahoo.com/intlindices?e=asia Somehow I doubt that the US will buck the trend come a.m.