FX Trading - A warning from Dr Doom

[donsu]

http://www.atimes.com/atimes/Global_Economy/IA10Dj02.html

In the background we are seeing growing concerns that a major correction in global asset markets may be brewing. Long-time international market guru and free-thinker Mark Faber told Bloomberg on Tuesday: "In the next few months, we could get a severe correction in all asset markets.'' Faber added: "In a selling panic you should buy, but in the buying mania that we have now the wisest course of action is to liquidate."

-snip-

Over the near term, any major correction in global markets might be good for the dollar because US fund managers have a ton of money invested offshore. If a decent piece of that money rushes back onshore to hide in short-term cash deposits, it would likely boost the buck. That could surprise. Another surprise that could flow from a global market correction is a big rally in the Japanese yen against all the major currencies on an unwinding of the yen carry-trade.

Stay tuned. If Faber is right, a correction could be very swift and deep because there is a whole lot of money out there being held by people with very itchy trigger fingers
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"severe correction" - "panic" - "itchy trigger fingers"

hummm

[BonnieJW]

1. What does Faber mean "liquidate?"

Is he saying you should sell everything in your portfolio and turn it into cash???? That would be a huge tax hit.

[donsu]

2. don't ask me, I just picked up on the catch words

what I know about trading would fit on the head of a pin

[SoCalDem]

3. I know less than you, but I do recall that once a generation

there is always a "glitch" that wipes out huge amounts of wealth that a lot of people were counting on for retirement.

It's time again..

all those pensions that USED TO BE, are no more, and in their place? 401-k & IRAs.. Those are mostly "market" investments, aren't they?