We can never assume that the markets are going to stay on track. February marked the eighth consecutive month of gains for the TSX. We were basking in the long term gains since March of 2009 and joyfully celebrating the shorter term gains racked up since last September. March began like most months...a kick up for the first few days, peaking on the 4th. And then...
Along came political upheaval in the middle east, beginning in Egypt then rolling to country after country. Seems you can only oppress the people for so long. Apparently about 30 years is the breaking point. The end result may very be that several new democracies will rise in the middle east and the people may, at long last, enjoy a level of freedom and equality that we take for granted. Unfortunately, the path to democracy, freedom and equality will likely be long and painful. And then...
Along came the earthquake in Japan. 8.9 Upgraded today to 9.0 Yikes! Unbelievable devastation. Within hours the Japanese economy ground to a halt. All available resources were shifted to rescue those still living and treat the injured. If the quake and tsunami weren't enough, a couple of nuclear power plants were damaged and may very well be an even larger threat to the Japanese people and economy.
From March 1 to yesterday the Nikkei was off over 10%. Today, another 10% haircut. Here at home, the TSX peaked at 14,252 on March 4. Down to 13,546 today. Tomorrow's not looking great with US futures already in the tank.
Seems like a good time for a re-read of A Little More About The Last (Next) Ten Years. Like I've said before, I don't have a crystal ball but it doesn't take a genius to predict that this stuff will happen from time-to-time. With instant worldwide publication of all events, both good and bad, the markets react immediately.
I plan to take a whole bunch off the table with the next recovery...whenever that is.
Along came political upheaval in the middle east, beginning in Egypt then rolling to country after country. Seems you can only oppress the people for so long. Apparently about 30 years is the breaking point. The end result may very be that several new democracies will rise in the middle east and the people may, at long last, enjoy a level of freedom and equality that we take for granted. Unfortunately, the path to democracy, freedom and equality will likely be long and painful. And then...
Along came the earthquake in Japan. 8.9 Upgraded today to 9.0 Yikes! Unbelievable devastation. Within hours the Japanese economy ground to a halt. All available resources were shifted to rescue those still living and treat the injured. If the quake and tsunami weren't enough, a couple of nuclear power plants were damaged and may very well be an even larger threat to the Japanese people and economy.
From March 1 to yesterday the Nikkei was off over 10%. Today, another 10% haircut. Here at home, the TSX peaked at 14,252 on March 4. Down to 13,546 today. Tomorrow's not looking great with US futures already in the tank.
Seems like a good time for a re-read of A Little More About The Last (Next) Ten Years. Like I've said before, I don't have a crystal ball but it doesn't take a genius to predict that this stuff will happen from time-to-time. With instant worldwide publication of all events, both good and bad, the markets react immediately.
I plan to take a whole bunch off the table with the next recovery...whenever that is.
No comments:
Post a Comment