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.
Live to Ride!