We are getting into irrational fear territory on this sell off. We were probably due for a 7-10% correction, but we're getting into some stock prices that are almost give aways. If this sell off continues, we'll be creating a sell fulfilling prophecy for a double dip.
Dow Jones industrial average plunges 600 as market rout continues. http://latimesblogs.latimes.com/money_co/2011/08/dow-jones-industrial-average.html
I've personally been buying silver, I remember when I first started about 3 years ago when it was still under $15, it's already more than tripled since then. Gold hasn't gone up 300% in the last 3 years. Silver can easily jump up another 20-30% in the next 12-18 months.
6th largest drop point-wise, but still not in the same area code as THE Black Monday's 22.6% single day "dip". http://en.wikipedia.org/wiki/List_of_largest_daily_changes_in_the_Dow_Jones_Industrial_Average
the bubble isn't in its infancy...it's up 600% since the gold bull move started. when you got jp morgan calling for 2500 gold by the end of the year after a $70 up day then you know things are getting stretched for the short term. i do agree gold will likely end the same way as the silver bubble did with everyone random person talking about it and i do think that is sometime in the future, but things are getting stretched right now imo. who knows maybe it will snowball like the silver bubble did and have some blow off top in the next couple weeks. let's see what tomorrow brings...man i really hope we get a big gap down and a good panic to buy. this sell off has become silly. i dunno....we shall see...done rambling...
There is a very big difference between a bubble and a bull market. Gold has been up for over 10 years, but none of that has been part of a bubble. It has only recently started some signs of exuberance, but even then only the beginnings. Bubbles, the height of exuberance, do not last for years. 1-2 tops. That is how much room I believe gold still has. The internet bubble was between 98-00, unless you want to call everything starting from the early 80s a bubble. The real estate bubble lasted a bit longer, since it is an illiquid asset and prices move slower, starting from around the early 2000s. For gold, if you want to argue that we have already started, I would tend to agree, but anything beyond a year ago, it has simply been a natural reflection of what has gone on in the equity/debt/currency markets. Oh, and silver has yet to see its high either.
lol a friend just texted me that market breadth has been this negative on the NYSE since Germany invaded France in 1940.
it was just announced that GLD is buying out NDAQ in a take under. very bullish for GLD both will open at 1940 tomorrow.
How about a black week? Europe is already down 2-3% in trading this morning. Once trading opens in NY, it could tank again.
Time to buy into the fear and start investing heavily in soybean futures like Colbert said. <table style='font:11px arial; color:#333; background-color:#f5f5f5' cellpadding='0' cellspacing='0' width='512' height='340'><tbody><tr style='background-color:#e5e5e5' valign='middle'><td style='padding:2px 1px 0px 5px;'><a target='_blank' style='color:#333; text-decoration:none; font-weight:bold;' href='http://www.colbertnation.com'>The Colbert Report</a></td><td style='padding:2px 5px 0px 5px; text-align:right; font-weight:bold;'>Mon - Thurs 11:30pm / 10:30c</td></tr><tr style='height:14px;' valign='middle'><td style='padding:2px 1px 0px 5px;' colspan='2'><a target='_blank' style='color:#333; text-decoration:none; font-weight:bold;' href='http://www.colbertnation.com/the-colbert-report-videos/220650/march-04-2009/doom-bunker---jack-jacobs-and-stephen-moore'>Doom Bunker - Jack Jacobs and Stephen Moore</a></td></tr><tr style='height:14px; background-color:#353535' valign='middle'><td colspan='2' style='padding:2px 5px 0px 5px; width:512px; overflow:hidden; text-align:right'><a target='_blank' style='color:#96deff; text-decoration:none; font-weight:bold;' href='http://www.colbertnation.com/'>www.colbertnation.com</a></td></tr><tr valign='middle'><td style='padding:0px;' colspan='2'><embed style='display:block' src='http://media.mtvnservices.com/mgid:cms:item:comedycentral.com:220650' width='512' height='288' type='application/x-shockwave-flash' wmode='window' allowFullscreen='true' flashvars='autoPlay=false' allowscriptaccess='always' allownetworking='all' bgcolor='#000000'></embed></td></tr><tr style='height:18px;' valign='middle'><td style='padding:0px;' colspan='2'><table style='margin:0px; text-align:center' cellpadding='0' cellspacing='0' width='100%' height='100%'><tr valign='middle'><td style='padding:3px; width:33%;'><a target='_blank' style='font:10px arial; color:#333; text-decoration:none;' href='http://www.colbertnation.com/full-episodes/'>Colbert Report Full Episodes</a></td><td style='padding:3px; width:33%;'><a target='_blank' style='font:10px arial; color:#333; text-decoration:none;' href='http://www.indecisionforever.com/'>Political Humor & Satire Blog</a></td><td style='padding:3px; width:33%;'><a target='_blank' style='font:10px arial; color:#333; text-decoration:none;' href='http://www.colbertnation.com/video'>Video Archive</a></td></tr></table></td></tr></tbody></table>
