Friends,
The chartists are busy finding clues to the markets next move. I notice that most of them are flabbergasted and what they sum-up is no more than some thing told generally and without any usefulness. In fact the chart reading is useless for the moment when the govts throw their weight around in support of markets at one stage and allow the economic absurdities to creep in at another. I always wonder how can the chartists cover the impending big moves by authorities into their study. I think, the best means to base future investment decisions on, is to first study the macro-level imperatives and micro level scope on either side to safely enter in to investment world. The chart patterns only tell history now unlike effectively telling the future movements, in the past.
‘BRIC’ nations have promise and investors would flock towards them. However, while Russia suffers due to low crude prices, India thrives. Landsman of ING Asset Management team says ‘global rate cuts and stimulus plans are going to drive consumption, which most likely will spent in infrastructure, thus boosting stocks of materials and energy producers of countries like Brazil and Russia.’
Mark Mobius (looks after 26 billion dollar investment under Templeton) says 'we are having wonderful time buying stocks’. Arther Byrnes of Deltec says ‘I am optimistic; I think we have taken our medicine’.
These opinions make sense because the 746 companies in MSCI Emerging Markets Index are now trading below 8.5 PE up from 6.1 PE on 4 Dec 08.
DOW had closed last week at very respectable 9034. The Asian markets have opened positive today. So, make hey while sun shines.
HariOm,
Krsna Khandelwal
BIRDINFO Stock Rx - A prescription for stock market
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