Capitulation Low…More Selling to Come?

Yesterday, Publisher James Woodburn issued a ‘Stop Press’ announcement. ‘Due to the historic recent market price action, we are ceasing the normal publishing schedule’, he said.

That means from today onwards, we’ll be sending you special updates on the unfolding market action.

To kick things off, we have a special video recording for you. In it, I’m joined by my colleagues Dan Denning and Shae Russell, to talk stocks, bonds, oil, and gold, amongst other things.

We recorded it yesterday morning, before the market opened. At the time, the ASX 200 futures suggested the market would fall another 5%.

But Aussie stocks only dropped briefly at the open yesterday. They then staged a strong rally. US stocks followed that up with a big rally overnight.

Given Monday’s almost capitulation selling, this does look like a short-term low to me. But clearly, with so much fear and uncertainty around concerning the economic impact of the spread of the coronavirus, it won’t take much for the selling to resume.

Whatever happens, we’ll be onto it for you over the next few days.

Our coverage will culminate in the meeting of the US Federal Reserve on 17–18 March. This is when we’ll know for sure what type of unconventional idiocy this famed central bank has in store for us.

For now, though, we hope you enjoy the chat below…

I’m sure after watching it you might have further questions. If so, we are here to answer them as best we can over the coming week. Do write in with anything you’d like us to address and we’ll try our best to get to all of them.

Also, if you want to follow us on Twitter, you can do so here:



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Greg Canavan,
For Money Morning

Greg Canavan is a Feature Editor at Money Morning and Head of Research at Fat Tail Investment Research.

He likes to promote a seemingly weird investment philosophy based on the old adage that ‘ignorance is bliss’.

That is, investing in the Information Age means you have all the information you need at your fingertips. But how useful is this information? Much of it is noise and serves to confuse, rather than inform, investors.

And, through the process of confirmation bias, you tend to read what you already agree with. As a result, you often only think you know that you know what is going on. But, the fact is, you really don’t know. No one does. The world is far too complex to understand.

When you accept this, your newfound ignorance becomes a formidable investment weapon. That’s because you’re not a slave to your emotions and biases.

Greg puts this philosophy into action as the Editor of Crisis & Opportunity. As the name suggests, Greg sees opportunity in a crisis. To find the opportunities, he uses a process called the ‘Fusion Method’, which combines traditional valuation techniques with charting analysis.

Read correctly, a chart contains all the information you need. It contains no opinions or emotion. Combine that with traditional stock analysis and you have a robust stock-selection strategy.

With Greg’s help, you can implement a long-term wealth-building strategy into your financial planning, be better prepared for the financial challenges ahead, and stop making the basic, costly mistakes that most private investors do every time they buy a stock.

To find out more about Greg’s investing style and his financial worldview, take out a free subscription to Money Morning here.

And to discover more about Greg’s ‘ignorance is bliss’ investment strategy and the Fusion Method of investing, take out a 30-day trial to his value investing service Crisis & Opportunity here.

Official websites and financial e-letters Greg writes for:

Money Morning Australia