Club Mulgoa

Friday, March 04, 2011

Law of Average

DJI cannot keep going up while China is faltering and the price of oil is heading upwards. After a spectacular rise the day before, it has gone down on US Friday. That means Monday will be a wreck for the Aussie puppy.

I spoke to an analyst on Wednesday at the Proactive presentation. He is very concerned about the price of oil killing off US recovery. Robert Gottliebsen from Eureka Report thinks the small caps will get hit badly by a Chinese downturn.

Unless it is exceptional value or has great prospect, I will lie low. If price of gold and tin continues to rise, then gold stocks will stick be on my radar. Potash? It is difficult to stay away from it if it is a float.

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