Meanwhile, Warwick Grigor at Far East Capital warns juniors against any effort to rattle the tin.
“The mere suggestion of the possibility of a raising will send investors running away in panic,” he told clients on Friday.
Moreover, any positive news will be seen as a providing a liquidity event and an opportunity to reduce exposure. Value for most investors today is a foreign concept and no amount of rational talk will sway them.
“Emotion, not rational analysis, is driving the markets,” says Grigor. “The dominant emotion today is depression.”