Tuesday, August 14, 2007

Late Night Thoughts

The Asian markets are in free fall. The Global economy has collapsed. All is lost. OK maybe not. But things are getting pretty ugly. While there is still all this liquidity floating around the globe, it appears investors are too shell shocked to put it into equities. They prefer running to the safety of false safe havens such as the unmighty US Dollar. Why isn't Gold and Silver rocketing skywards ? Is a piece of paper more valuable than solid Gold ?

Looking over charts from 1990 and 1998, we look to be in a similar state. A credit shock followed by a sharp pullback of 20%+ in the markets. I'm starting to feel we could see 11,000 on the Dow by late September. If we don't rally hard, I see 12,800 on the cards for the Dow before the week is over.

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