Today the outfall from the feds recent update, a consecutive contraction from China with a sprinkling of all round negative media see’s the uprooting of the bullish run in the markets.
What’s next? Well the indirect correlation between falling Brent,Gold,Equities and Globals is the last big slap on the backside as the FTSE’s recruited to the kamikaze trajectory as the bears raid for some easy pickings.
Myself and David Thomas have exchanged a few thoughts on the undervalued smallcap sector on numerous occasions which leads me to the pressure on majors as the fed suggest a reduction on the $85billion bond purchase leaves fund managers in a predicament.
With the majors already over inflated as are the indices fund mangers have to find value in the markets…
I think this will be the catalyst to the cyclical trend reversal in the smallcap sector over the coming months! 2014 is not that far away so should you believe all you read ”The whole shooting match is up and were all snookered ” then your likely to be buckling under the strain of the bear shout…
Personally I see it as the turning point for reasons listed that the money will return to smallcaps and equities in some respects however this does not happen in a happy clappy manner it usually comes of the back of some seriously aggressive price action…
Stay safe and stay sane
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(These are but opinions derived from my own experiences
and thoughts and do not adopted as statement of fact)