GOD SAVE AMERICA! IT IS BERNANKE AGAIN!!!!
It is not a surprise that President Obama supported him for a second term because he does not have an alternative. Atleast for overseeing the mess he has created and the after effects it is going to create, Ben Bernanke should be in office. Otherwise he may easily be let off the hook when the real effects are felt after a couple of years.
The Unemployment rate is steady close to 10%, the commercial real estate still under huge pressure, the bank closures happening at a steady pace(140 for thefull year 2009 from the 115 when I last wrote in October2009)and 10 for January 2010, the end of the tunnel is still far away before lights can be seen.
The global stock markets had a jolt last 10 days to the unsustainable rally of the last 10 months. Very few market participants were prepared for this and naturally they are caught again on the wrong foot. Now they search for reasons for this fall and point fingers to China' curb on bank lending, cooling of commodity prices and selling by hot heeled FIIs. In my humble opinion, the only reason should be valuations. It will be foolish to expect shares to keep going up after a run of this magnitude in 8-9 months.
I feel, the Auto and Oil Marketing companies have completed their upmove and so provide good opportunities on the short side whenever they go up 10-15% from the current levels(close to their recent peaks). I am happy to note that my recommendation of SPICEJET at 37 in October 2009 has done well. Hold on to it and add more whenever it falls to 48-50 levels.
Happy investing.
The Unemployment rate is steady close to 10%, the commercial real estate still under huge pressure, the bank closures happening at a steady pace(140 for thefull year 2009 from the 115 when I last wrote in October2009)and 10 for January 2010, the end of the tunnel is still far away before lights can be seen.
The global stock markets had a jolt last 10 days to the unsustainable rally of the last 10 months. Very few market participants were prepared for this and naturally they are caught again on the wrong foot. Now they search for reasons for this fall and point fingers to China' curb on bank lending, cooling of commodity prices and selling by hot heeled FIIs. In my humble opinion, the only reason should be valuations. It will be foolish to expect shares to keep going up after a run of this magnitude in 8-9 months.
I feel, the Auto and Oil Marketing companies have completed their upmove and so provide good opportunities on the short side whenever they go up 10-15% from the current levels(close to their recent peaks). I am happy to note that my recommendation of SPICEJET at 37 in October 2009 has done well. Hold on to it and add more whenever it falls to 48-50 levels.
Happy investing.
Labels: stock market - indian and global
posted by manipayal @ 6:05 PM
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