Of dynamite fishing and whales

Charles Gave | GaveKal | 26 August 2013

I have often compared investing during great bear markets to dynamite fishing. One throws some dynamite sticks in the deep sea, to explode 300 meters below the surface. A large number of fish are killed. They rise to the surface belly up, the small ones first, the big ones some time later. And, finally, one or two whales emerge.

For the last few months, I have been worried by the signs appearing everywhere of a contraction in international liquidity - the collapse in the price of s...