Well before the Japan earthquake and tsunami the stock markets were already looking a little weak as if they have almost reached their top. However, like the event on September 11th back in year 2001 which saw the U.S markets taking a dive on the destruction of 2 buildings and over 5000 people killed, the Japan earthquake and tsunami will be the catalyst of the next leg down of the stock market as the damage is far greater and the economic impact is larger.
Initially, I thought that the market correction / decline may come in and around the June time-frame, but the most recent Japan tragedy has moved that time-frame closer in my opinion. Mind you the decline could come today or in another few months…who knows but again the Japan natural disaster and subsequent huge Nikkei 1000 plus points decline has further weaken the markets and there are more ripple effects coming.
I am standing firm on my positions in downward movement of the S&P and Nasdaq through Horizon Bear ETFs and also GOLD ETFs both trading on the Toronto Stock Exchange (TMX). Also keeping out of U.S dollar as the U.S Government will be printing more money.
We will see if this strategy will pan out in the next 6 months to a year.
by Das Brain
Read My Disclaimer – Do your own due deligence
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