> "junk bonds yields are soaring"
no they aren't. <a href="http://ycharts.com/indicators/moodys_seasoned_baa_corporate_bond_yield#startDate=&endDate=&zoom=5" rel="nofollow">http://ycharts.com/indicators/moodys_seasoned_baa_corporate_...</a><p>> "there will be massive dumping when the support levels are broken"
Really? Technical analysis? I wonder if he consulted his tea leaves as well.
<a href="http://en.wikipedia.org/wiki/Technical_analysis#Empirical_evidence" rel="nofollow">http://en.wikipedia.org/wiki/Technical_analysis#Empirical_ev...</a><p>> "In my Wellington Letter, I have been looking for a serious crisis to start in early September."
So he believes he can predict major market movements months in advance? Why doesn't he use that data to make a billion dollars (as he easily could if he has this remarkable power). Rather, than, say, selling that same 'information' for $500 per year? <a href="http://www.dohmencapital.com/wellington.htm" rel="nofollow">http://www.dohmencapital.com/wellington.htm</a><p>> "Money managers realized during the July-August plunge that they were way overinvested."
Wow, that's a huge claim. All of them did? What about the incompetent ones, they somehow tuned into this realization somehow? Or does he mean that just in general a lot of them 'realized' this? Of course, when he says 'realized' he actually means 'guessed', since you can't realize that you were wrong about a future event that you have no evidence to predict one way or the other. Phrasing it this way is just an attempt to use the unscientifically derived (in this case, assumed) opinion of anonymous or nonexistent experts as evidence. This is the sort of hand waving 'logic' he uses in the entire article.<p>> "In the meantime, the Pied Pipers will be out in force telling you to buy, so that they have someone to sell to."
If Forbes isn't part of the Pied Pipers, who the fuck is? This is like Fox News talking shit about the 'mainstream media' while being #1 in the ratings.<p>> "Warren Buffett’s $5 billion investment in Bank of America (BAC) shows that a crisis will not be confined to Europe. I consider this a signal that things are much worse than they are saying."
It is entirely evidence that Warren Buffet thinks the fundamental value of BAC is higher than what he had to pay for it. Generally betting against Warren Buffet won't be profitable. Wait a second! Isn't Warren Buffet a 'Money Manager'??? I thought they were all overinvested and trying to unload. Warren Buffet is by far the largest 'Money Manager' in the world, and yet he's diving in with both feet. For fucks sake!<p>> "Now that everyone knows there is a crisis in Europe, the one in China will soon be making headlines."
So... They won't sell us stuff anymore? They barely import anything from the west, so if they go into some kind of crisis they still won't, but their exports will get cheaper and demand for oil and natural resources will go down worldwide.<p>> "For more strategic recommendations, read September 5′s issue of the Wellington Letter."
LOL, this entire article is just an advert.<p>This author is just full of shit on every point.