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Since IG retail is about the best contra indicator I know of I am still waiting for a lot more short interest before I get long again.
Retail investors seem to be able to sit on the sideline in a bull market for five years, and then as soon as there is the start of a selling rout, THEN decide that's the time to invest their money, each time "calling the bottom" as it falls, dead cat bounce and falls again, then tell everyone that investing in the stock market sucks.
Retail investors seem to be able to sit on the sideline in a bull market for five years, and then as soon as there is the start of a selling rout, THEN decide that's the time to invest their money, each time "calling the bottom" as it falls, dead cat bounce and falls again, then tell everyone that investing in the stock market sucks.
True, but most of the professionals aren't any better. Most of them make money out of flogging crap advice. It's difficult to avoid cutting your losses too late and it's difficult to avoid taking profits too early. It's as much about psychology as any particular insight or ability to time markets.
Interesting article on Glencore. Stating that if the slide continues they won't have enough money and will need to raise shares. Setting a 42p target. It's worst hit again today
Must admit when I bought wasn't aware of how indebted they were
If they get rid of debt they become profitable even at low commodity prices, then they can shut a mine or two and create a shortage.
Their outlook has definitely improved, it looks like now they can weather out the commodity doldrums, and looks more like a good longterm investment.
If you hold they'll be out with the begging bowl, probably will be a chance to make a quick buck if their issuance is well below market price.
I thought their IPO was over priced massively, it now feels very underpriced but who can tell ? I also thought Ocado was over priced but they have done well.
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