Investment Gurus
Sign Up for free News Alerts
Daily Reckoning founder predicts end of the rally
Posted on 12 April 2010 with 2 comments from readers
Bill Bonner, founder of Agora Financial and publisher of the Daily Reckoning, explains why he believes the rally in financial markets from the depths of last March is almost over and a very different investment climate beckons.
This barnstorming performance sets out a shrewd agenda for investors wondering what to do next in this often confusing environment. That said calling a market turn is always frustrating, and the market can remain stubbornly fixed on a trend.
Perhaps the $60 billion Greek bailout will cheer investors today, but is this the top of the rally?
2 Comments posted by readers:
When Bill Bonner speaks, inquiring minds should listen attentively. And if readers of this website haven’t yet read any of Bonner’s books, you ought to.
Ironically, though, the Wall St. “Masters of Manipulation” (specifically, JPM, GS, HSBC, and the Bank of England which is across the pond!) will continue to manipulate the western world’s stock markets, its bond markets, its commodities, and its currencies . . .
These desperate actions by these specific banks are being conducted every day on behalf of their respective Central Banks; in turn, this will delay the inevitable stock and bond market declines.
My best guess is that the financial markets won’t be under significant pressure until the fall of 2010.
They struggled hard to get the market over 11000 so I doubt all those that bought had ought ony knowing that it was going to drop after. My guess is that we see 12000 pretty soon. I think the rally is pathetic due to manipulation but no one is buying knowing that it is going to crash after. Only way now for this market to tank is if all the big boys were to sell at the same time which I sort of doubt since there are no other ways to make money during these bad times. Banks are not giving good returns and neither is the real estate sector so this leaves us with the stock market to play with regardless of current economic conditions,foreclosure rates and unemployment numbers.
Many people that went short lost a lot of money including me. Their main goal now is to squeeze all shorts out of the market and this has been accomplished. This can be seen by looking at the short options and short ETF’s share prices along with the May call options.