Discussion in 'Shares' started by Maverick, 15th May, 2006.
Market braces for sharp decline
What are your thoughts about this?
So far we have got nice sell off today...
Apart from that, market is still in the up trend.
Warren Buffett Sells the Family Silver
St. LOUIS (ResourceInvestor.com) -- With the market abuzz with anticipation of what Wall Street legend Warren Buffett intends to do with Berkshire Hathaway?s $40 billion in cash, a small, but perhaps very significant little bit of news may have been overshadowed.
At the company?s shareholder meeting in Omaha, Nebraska on Saturday, Chairman Warren Buffett announced that the company has divested its silver holdings.
David Morgan, author of ?The Morgan Report,? sent a note to clients quoting an anonymous source at the Berkshire meeting who confirmed the sale.
According to the source, no sell price, date or addition data were given other than the announcement that the company not longer owned any silver.
The source said Buffett didn't really talk about silver other than he sold it, but said he would rather hold businesses that have earnings.
According to news sources today, Buffett told shareholders, ?We had a lot of silver at one time but we don't have it now.?
In 1997, Buffett purchased an estimated 130 million ounces for delivery in 1998. In February 1998, the silver price jumped to a high of $7.81/oz, rallying 50% since mid-1997.
The CPM Group estimated earlier this year that Buffett still held somewhere between 100 and 129 million ounces.
Buffett said that Berkshire had not benefited from the particularly steep rise in silver prices.
?I bought it very early, I sold it very early. Other than that it was perfect,? he joked.
Silver hit a 23-year peak of $14.68 two weeks ago. On Friday, July silver futures closed at $13.89 an ounce.
Buffett said he detected speculative participation in the recent run up in prices, particularly metals.
?What the wise man does at beginning, the fool does in the end... any asset that has a big move based on fundamentals will attract speculators...,? he said, according to sources.
?Something like copper is speculative on both sides of the market, and responding more to speculative than fundamental forces,? he added.
PS - and this ...
Commodities Big fall???
The sharp sell-off in the ZAR today could be a warning flag for the AUD and the dollar bloc currencies given the ZAR link to gold and commodity prices with the Rand losing more than 2% today. The blast in Nigeria may have aided the sell-off but traders are also increasing worried over commodity prices, adopting a new buzz-word "parabolic" to describe the rocket-fuelled gains in metals lately. Fears of a sell-off in the commodities market are growing as are warnings from analysts. Access Economics and Canadian banks have warned of the risk of a large price correction. Today"s Chicago Tribune notes concerns from Cargill, Warren Buffet, Prudential"s Ed Keon and Merrill Lynch"s David Rosenberg.
Base metals continue to stall today after the sharp gains and any deep correction in metals prices are likely to be felt strongly by the AUD.
About time it started to correct. I was starting to doubt myself!!
I made that prediction last month it would happen early in May. Not counting my chickens yet, but today is a good start to "the correction we had to have".
Let it happen, and then we can all have some fun
Hey Perky, do you mind me asking what you mean by 'have some fun'? Do you mean buying cheap or trading short?
So do you guys really think a correciton is coming right now? I know it's all speculative, but interesting nonetheless. I won't be surprised if it recovers (if you can call it that) tomorrow.
Buying quality blue chips cheaper.
I would love to see BHP come down to say $27 or so, and WBC to perhaps somewhere below $23.
This is not intended as advise btw...just IMO
I would like to see Tropo's resistance levels for XJO and XAO.
I did not run numbers as yet but approx. levels =
Resistance (XJO) = 5407/10.
Support (XJO) = 5170/80 & 5100/10 & 5028/35
If XJO hit 5030 (+ - 25 points approx.), BHP may hit $27 (approx.)
One more ....The market can stay irrational much longer than a traders/investors can stay liquid
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