Futures are pointing UP accross the board.........
Thanksgiving may have given us the change in "sentiments which is crucial for turning this market UP"
Markets have tried to "discount the carnage of sub-prime writedowns...many many times..but we are being SPOOKED by each writedowns accross the globe"
The market sentiments is not about writedowns any more...it is about FEAR.......
Fear of recession....
Fear of housing collapse....
Fear of bear market......
Fear of China slowing down......
Fear of US $ further collapse ......
Fear is resulting in :
Collapse of US$...
Collapse of Zinc prices....
Collapse of Copper prices....
US stock market hitting the "proverbial skid or panic in last hour"
Indian stock market also tanked lately ????as their currency (rupee) hit sky high against US$ thus affecting exports and IT companies who reports in US$......
Canadian stock market has tanked because of slumping commodity prices & rising CAD..which is "hurting manufacturing big time......as it exports to US as the-largest trading partner....so Bank of Canada will rescue the Canadian economy by lowering interest rates as early as Dec 4 or in jan 08.......but markets have taken the cue and doing BOC dirty work......
So....after all that analysis by a trained economist (first degree was in economics)....where do we go from here :
-Focus on China & India for exposure especially @ this juncture because of currency appreciation which helps eps...because stock prices have collapsed...great entry point NOW.......like BIDU,STP,CTRP,FMCN,SINA,SOHU,AOB,CMED,FXI.....
-Focus on strong stocks in US & Canada which has worked.... like RIMM,AAPL,GOOG,FSLR,GRMN,ISRG,AMZN,VMW.......
Please do your own due diligence & find your own comfort level.....as markets are still CRAZY...
BLOG does not give buy or sell.
Saleem
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