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Clive Maund generally writes about gold and silver, and I have followed his posts on safehaven.com for the past year or so. I ask myself why I am particularly attentive to his posts, and I really don't know that he has been more likely correct than anyone else who prognosticates--I guess I like his posts because they are simple.
He just posted an interesting analysis "China Crash - domino effect on US markets, and collateral effect on resource stocks..." http://www.safehaven.com/article-7641.htm
One thing that caught my eye are his graphic examples of the visual difference between log charts and arithmetic charts using the Shanghai Stock Exchange Composite. If anyone thinks what happened in the US Markets from 1998 to 2000 was impressive with regard to parabolic moves, then look carefully at the SSEC to better understand just how steep a parabolic move can become.
He also makes some possibly pertinent comments on gold stocks, and offers his opinion about stepping out of that market in the event of a "freefall" of world markets. Referencing the HUI, Maund noted, "The action over the past year does look like a large consolidation pattern, and many pundits are touting it as that, yet it hard to see how this index can do anything but get hammered if world markets go into freefall precipitated by a collapse in China."
I think his article is worth reading.
I cannot but believe China has to undergo a correction, if one believes bubbles pop.
He just posted an interesting analysis "China Crash - domino effect on US markets, and collateral effect on resource stocks..." http://www.safehaven.com/article-7641.htm
One thing that caught my eye are his graphic examples of the visual difference between log charts and arithmetic charts using the Shanghai Stock Exchange Composite. If anyone thinks what happened in the US Markets from 1998 to 2000 was impressive with regard to parabolic moves, then look carefully at the SSEC to better understand just how steep a parabolic move can become.
He also makes some possibly pertinent comments on gold stocks, and offers his opinion about stepping out of that market in the event of a "freefall" of world markets. Referencing the HUI, Maund noted, "The action over the past year does look like a large consolidation pattern, and many pundits are touting it as that, yet it hard to see how this index can do anything but get hammered if world markets go into freefall precipitated by a collapse in China."
I think his article is worth reading.
I cannot but believe China has to undergo a correction, if one believes bubbles pop.
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