Things to Follow this Week/Strategies

[charliep]

Monday morning process of asking what you are following in the markets and likely strategies.

My issue is the overall economy. The $700 bln (or whatever) doesn't seem to be doing much the settle the market down. The impact is volatility as we are seeing today.

Others thoughts?

[jensend]

it looks like the markets in north america, asia and europe took the weekend to think it over and came to the conclusion the bailout won't work. i think they're right; the system has deteriorated and been corrupted to the point where it probably needs a good washout and some systemic changes. i think we're all in for a rough ride. if you look back at the last few weeks it appears the collapses and devaluations are picking up speed not being dealt with as they might wish it to appear.

[cottonpicken]

Jumped off the combine to double check a few things with the latest going ons.

If you have cibc holdings keep yourself updated with their stock price.

And dont say i didnt warn you.

Funny my portfolio is sailing in such turbulence.

[charliep]

You know how to kick a guy when he is down.

Hopefully all here are well enough diversified in our investments to weather the upcoming storm. A solid balance sheet will be critical - particularly if credit starts tightening up and interest rates start to rise.

[agstar77]

First will come deflation , then inflation as scarcity of product and a humungous money supply kick in. The trick will be to survive till inflation raises commodity prices.

[Choice2U]

Not sure if I follow, Charlie. I understand why the availability of credit will become an issue but I'm not sure why interest rates would rise. In a stagnant economy, there shouldn't be pressures to increase interest rates (except for the US's annual deficit) but Canada has a balanced budget. Rising interest rates ae used to quell inflationary pressures which I don't see.

[TOM4CWB]

Charlie,

The Japan experience is a good example.

Interest rates did not rise... deflation was a big problem...

They have much experience with this very problem.

[kamichel]

700 billion works out to 2000 for every person in USA, so the poor people would have ended up paying for the rich man's house that he paid too much for in the first place. I can see why congress had to turn it down. Yet they have money to fight wars or should we now say had money to fight wars.

[parsley]

Or is it that stock losses are being unobtrusively downloaded to worldshareholders, while everyone is busy watching the circus?

[bucket]

It is really annoying to know that the people that got everyone into this mess never seem to put their hand up to take responsibility for it. They will continue living their lifestyle while passing it on to the workers of their companies. Its disgraceful.

[charliep]

Choice2U

Actually just some ideas. Will note cottonpickens points over time about the potential flight to things that have concrete value - commodities.

In the short term, also note the risk premium that is being put into interest rates. Had a comments that interbank lending has almost stopped and it is only the central banks that are providing liquidity.

Also will be following currencies (i.e. US dollar) and steps that might be taken.

Kinda like being passenger in a car going 100 mph on black ice, listening to the antilock lock brakes/stability control kick with little impact and hoping the driver knows what they are doing.