Thursday, January 17, 2008
House of Brown, Now Sit Down
With CitiGroup writing down anything they can get their hands on, the long predicted fallout of the 'Sub Prime' Meltdown is starting to be felt. Is this the end of the world? No, but it does mean that the Dow is much more likely to see sub 12,000 levels than back at 14,000 any time soon. It seems to me that Bernanke will be quick on the draw should the American economy start turning further south and this should give us a little bit of short term relief from the sky falling in. I wouldn't want to be long the market with the current irrational selling. There is however a good opportunity for long term Aussie investors to get long at these levels. Quality companies like NAB, at $35 is a bargain, Zinifex at $10 is cheap as chips and I also like Iron Ore in the short term with price negotiations currently taking place. MMX looks really good at less than $3.