Valuations in the junior resource space are being thrown out the window as the markets crumble to a degree perhaps not seen ever before, says John Lee, portfolio manager with Mau Capital Management LLC.

"What we are witnessing is unraveling systemic risk, debt implosion in its full view except the scale is grander than 1930," he says.

He said the main difference between today and 1930 is that the U.S. dollar is not anchored, adding that U.S. dollars will be pumped in to stabilize the system. "Maybe not through the [U.S. bailout] bill but they will be through other means," he says.

Mr. Lee adds that the liquidity crunch is sparing very few sectors right now, including his specialty, the junior resource sector. He says junior resource shares are now trading back to levels of $300 gold and $40 oil.

"With a number of junior stocks I know trading below cash value, in the medium to long term those stocks represent great investment. However, I don't know if today is the climatic bottom," he adds.