The stock markets are now surging

free4440273

Last fifteen minutes of the Dow session was very telling...and just look at those miners today:eek: : Rio, Xstrata, bhp - waiting to explode?:think:

hyposmurf

Something that I'm still pondering over is why funds that have a very heavy weighting in Russia have also been effected to the same extent as the rest of the world's funds.I thought they were quite detahced from the world financial problems from sub-prime etc.Maybe it has something to do with the upcoming elections?

Murphy_The_Cat

free4440273 wrote: »

Last fifteen minutes of the Dow session was very telling...and just look at those miners today:eek: : Rio, Xstrata, bhp - waiting to explode?:think:

Is this the sort of news that you were expecting ?

free4440273

Originally Posted by free4440273
Last fifteen minutes of the Dow session was very telling...and just look at those miners today:eek: : Rio, Xstrata, bhp - waiting to explode?:think:

Murphy_The_Cat wrote: »

Is this the sort of news that you were expecting ?

To me, the miners represent one big massive bubble: Rio UP 700+:eek:

Murphy_The_Cat

free4440273 wrote: »

Originally Posted by free4440273
Last fifteen minutes of the Dow session was very telling...and just look at those miners today:eek: : Rio, Xstrata, bhp - waiting to explode?:think:



To me, the miners represent one big massive bubble: Rio UP 700+:eek:

whoops, link missed

free4440273

Murphy_The_Cat wrote: »

whoops, link missed

Talk also of Vale and Xstrata merging. I just don't believe the worst is over, merger acquisitions or no merger acquisitions....

Aegis

hyposmurf wrote: »

Something that I'm still pondering over is why funds that have a very heavy weighting in Russia have also been effected to the same extent as the rest of the world's funds.I thought they were quite detahced from the world financial problems from sub-prime etc.Maybe it has something to do with the upcoming elections?

Nothing in the markets will happen in isolation. Knock on effects are extremely common. Just look at what happened with the NRK issue, lots of stocks were affected even though they hadn't reported the same issues... LLOY is a good example of a bank with effectively no sub-prime exposure being hit by the sub-prime troubles anyway.

When stocks drop, flighty investors panic and exit the markets as quick as possible, causing more drops even in unrelated sectors.

Of course, this is all just speculation on my part based solely on what I've observed, so it's hardly the final word on the matter.

Still, Russia's been much less affected than some of my other stocks, currently sitting at a 9% growth since September (down from about 25% at one point, but that may well have been a mini bubble!)

macgyver

I am hoping that the market has a surge on Monday as I am hoping to transfer a good sum of money to India to buy a property. Thats what I hoped today as well but the exchange rate (GBP Vs INR) actually slumped afterthe morning.

Hope Monday brings a good start to the week even with expected BOE expected interest cut on Thursday

cloud_dog

free4440273 wrote: »

To me, the miners represent one big massive bubble: Rio UP 700+:eek:

Everything thats on the up can be considered a bubble, and because of psychology (we're only human) often fulfills the prophecy.

The thing thats difficult to know is where in the bubble cycle are we? Me, I think we're maybe halfway??

You are also taking things slightly out of context wrt Rio as they have risen on the fact that someone wants to buy £7billion pounds, ergo big demand = big rise.

hyposmurf wrote:

Something that I'm still pondering over is why funds that have a very heavy weighting in Russia have also been effected to the same extent as the rest of the world's funds.I thought they were quite detahced from the world financial problems from sub-prime etc.Maybe it has something to do with the upcoming elections?

As ageis says, its the knock on effect. Other markets / stocks are affected sometimes not because of the relevant market or individual stock fundamentals but because of liquidity, large investment houses may need capital etc so, they liquidate holding (immediate cash) irrespective of the fundamentals of the stock.

cloud_dog

loates123

mining shares are no better than a few mths ago, metal prices wont drop

i reckon anglo american is the one to go for still over £9 lower than 3 months ago,
they will make money when they sell tarmac
and i would not be surpriced if someone comes in and buys anglo...