Can it get any worse? Does it matter for stocks and bonds?

S&P 500 post-Japan

I neglected to include a chart in my last post I wanted to highlight.  As mentioned before (read last posting by scrolling down) Japan added some downside leverage to a correction that was due anyway (discussed in my rants of a few weeks back).  To re-interate, the global correction has hit some turbulence, but ultimately history proves that rebuilding Japan will provide a kickstart to the global economy once the dust settles.  Demand for commodities will resume – most aggressively in the fourth quarter.  Interest rate increases will be on hold – giving new life to a bond market that was skittish and investors were selling their fixed income (retail and institutional alike) to buy into a stock market – admittedly they were late to the party and have now been humbled.

A cautionary note – it could very well be that we may get one of those very rare (like a Harley that doesn’t need any fixing) summer rallies.  For the record, my own ‘activity’ driven by the thoughts I’ve been babbling over the past few days is simple – topped up lumber (bought some to replace metals last month), picking up uranium at these ridiculous levels (I hope they’re ridiculous), as well as some mid cap growth (Linamar, Paladin Labs) type stuff.  I admit to buying back some nickel and iron ore juniors since steel has to eventually take a big role in the structural rebuild of tsunami/earthquake ravaged Japan.

Invest to Live…

Live to Ride!

About Mal Spooner

Malvin Spooner is a veteran money manager, former CEO of award-winning investment fund management boutique he founded. He authored A Maverick Investor's Guidebook which blends his experience touring across the heartland in the United States with valuable investing tips and stories. He has been quoted and published for many years in business journals, newspapers and has been featured on many television programs over his career. An avid motorcycle enthusiast, and known across Canada as a part-time musician performing rock ‘n’ roll for charity, Mal is known for his candour and non-traditional (‘maverick’) thinking when discussing financial markets. His previous book published by Insomniac Press — Resources Rock: How to Invest in the Next Global Boom in Natural Resources which he authored with Pamela Clark — predicted the resources boom back in early 2004.
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2 Responses to Can it get any worse? Does it matter for stocks and bonds?

  1. Stephen Bishop says:

    I have some of your old Resources Rocks Books for sale if anyone wants to see how right you were. .50 cents & shipping costs should cover it…
    Interesting how some of the resource names recommended were taken up by internationals and left the country.
    Now it will be the Oils and the Chinese (possibly others) will want to own all of them so they can secure their future supply.
    Your thoughts on this rant please (or is this in the new book) and when is your new book going to be out for purchase?



  2. Pam says:

    If you’re buying nickel and iron ore juniors for the steel needed for building, add manganese to your list – can’t make steel without it.

    P.S. Stephen – I’ll buy your Resources Rock books!

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