Sunday, May 9, 2010

Some readings this week

- Rogers, Faber advise paring investments as US stocks slump (Bloomberg, May 7): Investors should “be very careful and cut back” on their holdings if they have any “doubt,” Rogers said. While a bankruptcy for Greece will be a “good thing” for the country and the euro, it may result in “great instability” for markets as investors worry about contagion in other economies including the U.K. and the U.S., he said. Faber also advised investors to consider reducing their positions on any rebound in share prices.
Rogers, who predicted the start of the global commodities rally in 1999, favors so-called hard assets including silver on expectations of further “currency turmoil” in 2010 and 2011

- Computer trading is eyed. Debate turns to absence of circuit breakers, market makers as mystery plunge is probed (Wall Street Journal, May 8):
Traders parsing the mystery of Thursday's stomach-churning stock-market plunge are focusing on whether rapid-fire computer trading, coupled with the market's complex trading systems, triggered a free fall that appears to have begun with an order to sell a single stock.

- Gold and silver: the only game in town 2010-2011 (Financial Sense, May 12)
There are numerous reasons both fundamental and technical as to why the precious metals complex will surge over the next 18 months. The sector’s surge will be reinforced by the lack of an obvious trend in most other markets. Gold, Silver and the mining stocks will surge while other markets languish.

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