Correction Imminent - UPDATE

TWO PATHS DIVERGED IN A YELLOW WOOD...

Following a stellar September, I believe the stars are now lining up powerfully to halt the progress markets have made since Ben 'The Beard' Bernanke placed his quivering finger over that nuclear button marked 'QE2'...

STOCKS, PRECIOUS METALS, COMMODITIES: Correction imminent

7pm TUESDAY 12TH OCTOBER 2010

A sharp pullback in virtually all risk assets - in which category I now have to include the 'safe-havens' of gold and silver - is close at hand.  

UK PROPERTY: Prices post record drop as bull trap snaps shut

A BULL TRAP IN HOUSING (AND STOCKS) WAS SET IN THE REBOUND OF 2009 - ANYBODY BUYING SINCE ON A PRESUMPTION THAT THE WORST IS OVER IS LIKELY IN FOR A SHOCK

In my original Financial Report sent out way back in January 2009, I included a chart illustrating the classic timeline of an investment mania.  Here it is again, unaltered.  It applies to share prices, it applies to house prices.  It applies to tulips.  




After months of gradually accelerating price falls and a shocker out today, it seems increasingly clear that our 'dead-cat bounce' in housing is well and truly deceased.  The illusion of a return to normality persisted for a year and saw prices, in London especially, rebound quite strongly.  But it does appear that this was indeed a classic 'bull trap' and that the next extended phase of the decline has now begun.

Part II - WHAT LIES BENEATH

Manipulative, calculating and infuriatingly effective, Robert Zemeckis' Hitchcockian chiller stars Michelle Pfeiffer as a car crash victim suffering from amnesia and a 'perfect' marriage. Having moved with her scientific-genius husband into a beautiful New England retreat (Harrison Ford in one of his last ever topless appearances), she soon discovers that her new house is haunted, her neighbour is a violent wife-beater and her husband may be a liar, an adulterer and possibly, even, a killer.

Natural and supernatural clues soon lead her to seek answers at the bottom of a nearby lake.  

What lies beneath~~~?