Friday, July 25, 2008

HERE WE GO AGAIN : US FINANCIALS: FOOL'S RALLY !!!

Well until yesterday, led by a fall in Oil prices, the US Financial Sector rallied sharply from recent lows.
''''The credit crisis was over - Freddie Mac & Fannie Mae bailed out - and the housing market settling down''' .................UNTIL YESTERDAY.
As data from the US Housing sector continues to deteriorate, the banks may be set for a fresh round of writedowns.
An endless number of bailouts and low interest rates on the USD, are going to erode the purchasing power of the USD in the long run.
I wouldn't trust this rally, and would instead look at adding to gold positions on further declines in the precious metal.

1 comment:

Pierre said...

Hey David,

This is pierre for bombay scottish. Really impressed by your blog. Seems like you do a heck of a lot of number crunching every day.

Keep up the great work.