#7 Getting Rid of Shares Prior to the Oncoming Recession
The markets are turning. The systemic risk caused by climate change together with numerous feedback loops on both a microeconomic and macroeconomic level ensure that short selling the markets is the prime trading strategy in the immediate period on the financial markets.
The unanimous assessment of our Trading Team is that the Stern Report underplayed both the implications of the various feedback loops with respect to climate change AND the short-medium term negative impact on an economic system/markets that rely on growth for their sustainability. Capitalism thrives on risk and brinkmanship. This spiralling monster of a globalised marketplace would be fine and dandy for the global manipulators if it weren't for the fact that the systemic risk of climate change is absolute. Greenwash ensures that this reality is merely at the stage of being marketed for immediate competitive advantage (this applies to both business and politics). The short-termists simply haven't grasped or refuse to grasp the futility of peripheral market tinkering in the face of the coming economic tsunami. The markets are beginning their decline. The sophisticated operators are getting involved. When Bernanke and Greenspan are providing conflicting analyses, who would you rather side with?
We have been advising clients to get out of the FTSE and DJIA markets both generally and specifically since the former hit 6400.
The skill is to determine where best to put your money and how to hedge your potential exposures in the current and projected global financial climate and that is not a concern of this post.
If you own shares, sell... Not only will there be a correction of 10-20% from recent highs but the eventual recovery will be gradual. It is difficult to envisage a near future bull market set against the very real backcloth of global warming. The only other scenario is a serious correction due to both psychological market overreaction and institutional prompting - this possibility would yield a "Depression" beyond a simple recession.
