This is not a investor market, it is a bear market, bull markets do not have this kind of volatility. This is a day trader scenario, as the proposed action by “O” and the Clinton Gang (they will surely clash with one another) has investors on edge, and they are selling practically everything, no matter what, the good and bad companies, today they bought on technical issues.
The American voter will be very angry when he comes out of the ether with fewer jobs, hyper inflation, devalued money, and home sweet home not so sweet. Or Worse Stagflation or Deflation. There will be trouble here in the USA, the UK, the EU as the developing economies lead the recovery.
As we also know, the global economic slowdown is dragging down economies and stock markets worldwide. And Chinese stocks have taken some big hits as investors question the sustainability of China’s economic growth.
In fact, Hong Kong’s Hang Seng index rallied dramatically starting on October 28 through November 10, and gained 32% during this up move. But in the past 10 days, the Hang Seng index has retraced these steps and lost nearly 17%.
Now, there’s no doubt that China will feel the repercussions of the global economic slowdown. But there is little doubt in my mind that China will still be the fastest growing major economy next year, as it prepares for the huge Shanghai world exhibition (bigger than the Olympics by at least half). They will have a party leading the world in growth.
I do believe that things are very fragile at best now. Gun and ammo sales are escalating here in the US. The American conservatives are angry, Red is now Fire Red not Cool Blue.
Here is my position on O and the O Administration:
In a couple of months the simple campaign talk will meet head on realities of governing, and President Obama will confront the truth about his foreign policy goals + perhaps some unexpected crises too.
1) America’s financial crisis will severely limit his power, and strain the overseas alliances he says he want to nurture. We know that he popular abroad, but as President he must defend U.S. interests and that will crash head on with those of other nations.
Think about the European Union and China. Obama needs Europe’s backing to stabilize Afghanistan, combat terrorism and impede the spread of nuclear weapons, and he needs firmer ties with China to shore up U.S. interests in volatile South Asia and slow Global Warming, but he risks alienating both powers if his administration erects trade barriers to protect American jobs, an imperative he stressed in the campaign. See what I mean so far Brother.
2) Even with wide international support, it may be impossible for Obama to win the wars in Iraq and Afghanistan, prevent Iran from building a nuclear weapon, broker peace between Arabs and Israelis or stabilize African countries beset by civil strife.
Again, the realities are much, much more complex than Obama presented as a candidate.
Gold and Crude Oil on the Week.
Gold investors sought havens amid sharp falls in global equity markets sendling Gold up 6.9% on Friday, to trade at $796.35 oz, its highest level since October 21, bringing its gains on the week to 7.5%
Crude Oil Nymex January West Texas Intermediate managed to finish 51 cents higher at $49.93 a barrel yesterday, but was still down 12.5 per cent on the week. ICE January Brent rose $1.11 to $49.19 yesterday, but was also down 14.6% on the week.
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