See the post below from Manias, Panics and Crashes. After the mania ends, cash becomes king as sheeple rush to get out of assets and debt. And as Buffet would say, always sell early.
Since the hedge fund debt-fueled run-up wasn't just in houses - it was, well, in everything, will the unwinding now be in everything too? Gold, oil, houses, stocks, commodities, EVERYTHING?
Cash is king. But whose cash?
Global Markets Face `Severe Correction,' Faber Says
Marc Faber, who predicted the U.S. stock market crash in 1987, said global assets are poised for a ``severe correction'' and it's time to sell.
``In the next few months, we could get a severe correction in all asset markets,'' Faber said in an interview with Bloomberg Television in New York. ``In a selling panic you should buy, but in the buying mania that we have now the wisest course of action is to liquidate.''
The bullish outlook of traders in everything from bonds, equities and commodities to real estate and art suggests valuations are peaking, Faber said.
``I am not a great buyer of assets now,'' Faber said. ``We may be in a situation where consumer-price inflation comes back and will have a negative impact on the valuation of assets.''
11 comments:
"We may be in a situation where consumer-price inflation comes back and will have a negative impact on the valuation of assets"
justing hoping one of the readers smarter than be can explain this quote to me.
thanks.
Actually, as The Prudent Squirrel has pointed out, gold has decoupled from oil and also the recent U.S. dollar's strength. Had this been just a few months ago, both occurrences would have seen gold drop too. So what's this mean? Gold is beginning to be valued for itself as currency.
doesnt this go against the theory, that when you hear it is time to sell, you should really buy, and vice versa?
The markets will crash, but the million dollar question is WHEN?
Prices for antiques and collectables are skyrocketing on Ebay. Initial opening bid prices are way up as well as final price, through the ceiling. This on about two dozen categories of items that I regularly monitor. Stuff I picked up for 2-10 dollars within a recent two year span lets say, hammering down for $50-$100-$150 or more today. Crazy! Definitely now is the time to unload my old crap!
Six months-ago, Faber predicted a bull market in equities that would last through Jan. 2007.
Now he is yelling "sell!"
I'm selling.
I don't want to wake up and find the Dow down 600 points.
The bullish outlook of traders in everything from bonds, equities and commodities to real estate and art suggests valuations are peaking, Faber said.
commodities as far as copper and zinc are peaked. Gold and silver's time is coming...
Stuck in So PA said:"Prices for antiques and collectables are skyrocketing on Ebay. Initial opening bid prices are way up as well as final price, through the ceiling. This on about two dozen categories of items that I regularly monitor. Stuff I picked up for 2-10 dollars within a recent two year span lets say, hammering down for $50-$100-$150 or more today. Crazy! Definitely now is the time to unload my old crap"!
Everything I'm looking at is overpriced on ebay right now. I too use to pick up bargains too, but no more. You're right-sell it now while you can!
Actually, as The Prudent Squirrel has pointed out, gold has decoupled from oil and also the recent U.S. dollar's strength. Had this been just a few months ago, both occurrences would have seen gold drop too. So what's this mean? Gold is beginning to be valued for itself as currency.
Agree, gold is holding above 600 now. When more bad news comes out about the economy and housing it up from there on out.
I'm all in, lets go!!
I don't get it. The theme on this board (besides being the "blame america first") is that OIL and GOLD are only going up...
And it is the end of the world as we know it.
I sold my car on ebay. Got $200 below KBB private party. Tried selling it through ad in paper and craigslist, didn't even get 1 offer.
Gotta love eBay.
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