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Credit deflation and the reflation cycle to come (part 2)


spunko

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Talking Monkey
7 hours ago, DurhamBorn said:

 

They go big or no economy.No choice.CBs will print direct into the economy,i expect we will see governments backstop every industry.France mentioned tonight no company would go under.Not sure how they will do it,but its certain.They cant just say dont go to the pub and do nothing.There will be some form of insurance,maybe to provide working capital that all companies can access.Thats the key providing ticking over working capital.The CBs might offer to issue bonds to any company that asks 0% coupon paid back over 20 years.This debt deflation was always going to end up here one way or another.If governments do that then they can face the virus down then.Of course it means inflation down the line.Then as the virus ends expect massive spending so every big economy can become self reliant again.One huge thing to come out of this will be the west facing China down.The US might even en-circle them in naval assets.Trump said tonight it was nobody's fault apart from China'sxD

Governments have pissed around for decades,but ends of cycles are where the state machine kicks in.CBs will backstop a massive fiscal move.They probably have a few days to act.

If they really go big in the backstop the next few days can they stop the 75-80% fall in the S&P/DOW from peak that was predicted in the bust for this cycle

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UnconventionalWisdom
7 hours ago, BearyBear said:

3 years of gains = 3 weeks of drops... Trump must be very, very angry!

He knew it would come, not sure why he wanted to say the increases were because of him. Opens you up for scrutiny later on.

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1 hour ago, leonardratso said:

just made a final adjustment to my pension at work, 80% cash, 20% the shitty world tracker.

I await a big tick down then reverse it.

I think im the only one who does it, i mentioned it to someone else and they said 'i dont want to look, its probably a train wreck', i absolutely hate that kind of attitude, do something about it, dont just sit around thinkin it will be all ok cos it wont if you are not proactive with it.

Interesting, I looked at mine/my options to decide what to do; currently 50% stocks/30% bonds/10% property/10% cash...decided damage has been done now and so probably better waiting. If market drops further in next 2-3 months may go 100% stocks, but options are limited I.e UK FTSE ALL, Emerging, or World...the irony of it all is that the 100% Ethical and Sharia options have performed the best!

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1 hour ago, leonardratso said:

I think im the only one who does it, i mentioned it to someone else and they said 'i dont want to look, its probably a train wreck', i absolutely hate that kind of attitude, do something about it, dont just sit around thinkin it will be all ok cos it wont if you are not proactive with it.

Do nothing is as valid a potential option as any other.  It depends on the purpose and nature of the funds you have, your forecasts, and your timing abilities (if such things exist).  Fair enough though to at least think things through rather than blindly ignore the subject.  Each to their own and the best of luck to them.

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TheCountOfNowhere

Tesla's chart is pretty special

 

Market Summary > Tesla Inc
NASDAQ: TSLA
Follow
 

445.07 USD −101.55 (18.58%)

 

Tesla Inc performance chart

As far as I can tell, everything is ****ed

If this turns out to be a damp squid there's a fortune to be made by buying at the right time

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9 minutes ago, TheCountOfNowhere said:

And if you want a right laugh the consolidated share of countrywide is the funniest thing I've seen

 

COUNTRYWIDE performance chart

This is a rare Viagra formation

13 minutes ago, TheCountOfNowhere said:

Tesla's chart is pretty special

 

Market Summary > Tesla Inc
NASDAQ: TSLA
Follow
 

445.07 USD −101.55 (18.58%)

 

Tesla Inc performance chart

As far as I can tell, everything is ****ed

If this turns out to be a damp squid there's a fortune to be made by buying at the right time

same here 

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TheCountOfNowhere

Did someone menton the card factory yesterday

 

33.48 GBX −15.20 (31.22%)

 

Today

Cineworld look to be heading to 0

28.68 GBX −8.83 (23.54%)

And WH Smiths (one of my least favourite shops )...taking a battering

 

Market Summary > WH Smith Plc
LON: SMWH
Follow
 

856.50 GBX −176.50 (17.09%)

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TheCountOfNowhere

If you look at a lot of the share price graphs, they've all gone ballistic since 2012 ( guess why ).

They are all heading back down to 2010 levels.

It's carnage.

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