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Trading New Type of Bubble: No mania among the moms and dads?

Discussion in 'Shares' started by wdongli, 7th May, 2011.

  1. wdongli

    wdongli Well-Known Member

    31st Mar, 2010
    THE conventional wisdom has been that this boom in commodity prices, while spectacular in its dimensions, will behave as previous booms have done.

    In other words, there will be a correction, perhaps a series of corrections, as new supply comes on stream.

    Yes, the tree could not climb up to the Moon but where its limit is? Could we put seeds into soil today and a few days later we would cut of the buds since we worry too much it could not be higher anymore.

    The market herd appeared to reaffirm the rule in their minds as commodity prices suffered a sharp correction. And their feeling the commodity price wen to far, seemed also confirmed by that Gorge Soros and other big boys sold gold.

    But there are some heavyweight contrarians who see this week's sell-off as short-term cyclical volatility and that the medium to long-term trend is now ascending. So some big boys who have great record are buying in the correction.

    What do you think about your trees and buds now? Yes, market and big boys always give the contradict signals and you could not stop wondering. If a correction happen, you have to think enoughness based on the internal and external limitations around you.

    Are you sure or worry the correction would mean an end of the resource booming? Do you start worry about the profit so huge and if you pay it back you will be very regret? If so sell as soon as possible. How about Soros just felt enough for his profit from gold and want to get the cash in hand for new risks to get the new opportunities?

    More thought in Gold: is it at last days of utlimate bubble? - Member Blogs