I would like to hear some opinions on the current downturn.
We have had consecutive drops across most markets will htis continue, get worse or recover.
Current Market Pros:
earnings season would expect some good company profits.
Still strong demand for commodities
Lots of money around the world to be invested
Dodgy loans are hitting risky investment funds: will this only effect high risk funds which prob won't roll over to less risky investments. From what i understand hedge funds are legally set up so the company has no liability so the private investor stands to loose most?
Interest rate worries: US don't look like raising rates soon, Aussie either however japan and europe, china more likely:
China introducing new measure to control market: What could these be interest rate hike, other macro controls ?
My opinion is there is a downturn happening but current market is a bit panicing and that we could see a mild recovery in the next couple weeks followed by further fluctuations for next 12-18 months.
Big worry is the US building market, if that goes then i can see problems spreading hard and fast but can't see this happening untill middle - end of US housing market season (end of summer).
I only ask one thing could we not get stuck on severe market correction talk, I would like some balanced views