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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (88820)	8/17/2007 5:51:49 PM
From: Rocket Red	Respond to of 313057

Thank you, Thank you to the federal reserve board in the US, they are lowering the discount rate, the interest rate it charges the banks earlier this morning because other wise one could only imagine what today would’ve been like in the markets. But then it’s the Americans that created this sub-prime mess and one wonders if the fed and other financial officials hadn’t been a little more diligent about that problem, the whole world wouldn’t have gone through the recent mess it has. And while we had expected a correction all along, this is more than that...the resource world venture index is now down by 35% which is a significant “owie.” The good news of course is its suddenly pretty easy to find some decent stories assuming commodity prices remain high and there's no sign India or China will be needing any less commodities any time soon. As far as our crystal ball goes, if anything we will need more and more of this stuff and while some commodities had a correction recently, we wouldn't be surprised to see higher numbers. And of course oil is still yours for $70 a barrel...these are great prices for commodities. The one good thing is that when it was getting tougher to find decent stories a few months ago, all of the sudden there's some decent stories that are yours for half price. A list of stories that are potential double is a lot longer assuming better markets and getting through the next few weeks. There's still margin calls out there, and prime mutual fund redemptions, but there is also some bargains. It doesn’t matter how much grey hair you have or how many crashes you’ve been through, an event like this still needs hand holding...and there’s two writers we always love to hear about, one is Don Coxe out of the Basic Points. The other is Jeff Rubin, currently chief economist at Bank of Commerce, and a guy whose prone to make outrageous statements from time to time but almost always correct. Almost two decades ago, he suggested that things were out of line with the real-estate market in Toronto and they would crash by 20%. It was outrageous and he was attacked and threatened but he was also right. Yesterday, he was on BNN and he was asked if anything has changed, and his answer was that “the fundamentals are the same but perception has changed.” Should a person be buying in the market, he was asked. “Yes, I believe 6 months from now you’d be glad you did.”

To: LoneClone who wrote (88820)	8/17/2007 7:44:42 PM
From: Gib Bogle	Read Replies (1) \| Respond to of 313057

The way the percentages work? Starting with 100, a drop of 4% gives 96, then a rise of 4% leaves you with 99.84. BTW, I tend to agree with your suggestion that in the long run metal producers will get an added boost from the elevated prices that presumably will result from the effect of tighter credit on mining companies that need to borrow. By this logic, not just existing producers but also developers with sufficient funding in place should benefit. This assumes that the global economy doesn't slow significantly. The catch is that "long run" - how long might we have to wait to see even the strong miners back to their levels of a month ago? I hope it doesn't take years.