Oct

20

Get Real On The Economic Recovery And Stock Market Rally

October 20, 2009 | 6 Comments

In view of the challenging times ahead, I believe the stock market is too optimistic with its valuations of 15-25 times earnings. Stocks have rallied aggressively since March. Most of them are trading above their 200-day moving average and with no sign of slowing down. In this kind of bullish environment, fundamental analysis seems really foolish. A monkey, with no baggge of knowing how bad things really are, could have made huge profits just by throwing darts in the dark.

Aug

10

Don’t Bet On A V-shaped Economy Recovery

August 10, 2009 | 5 Comments

The better than expected US jobs data is likely to reinforce the view that the economy is stabilizing after a generational financial crisis. Some economists have even suggested that the economy will rebound strongly in the third quarter, with a surge in vehicle production. However, any fledging recovery could still be threatened by strong economic headwinds.

More on this topic (What's this?)
V-SHAPED OR W-SHAPED? (THE PRAGMATIC CAPITALIST, 8/22/09)
IS IT A V-SHAPED RECOVERY? (THE PRAGMATIC CAPITALIST, 2/4/10)
5 Key Market Signals to Know Before You Invest (Contrarian Profits, 8/5/09)
Read more on V-shaped recession at Wikinvest

Jul

22

Stay Nimble For Your Investment

July 22, 2009 | 2 Comments

The key is not to be overexposed to the stock market and stay nimble as the opportunities that present themselves may not follow traditional recovery patterns. Stocks could be depressed further or languish for years, so if you see the need to take profits off the table, then just do it.

Jul

5

More US Bailouts Dampen Market Sentiment

July 5, 2009 | Leave a Comment

Since the last week of June, the stock market has whipsawed in a tight range. Gone is the hot-headed exuberance but neither has a drastic correction materialize. Some bulls are still holding the fort amid a thin market volume, but deciphering market sentiment is difficult as false signals can be easily generated by a few market participants.

May

31

Is This Stock Market Rally For Real?

May 31, 2009 | 4 Comments

With each passing week, the case for a bearish reversal out of this stock market rally becomes stronger. For the time being, the bulls triumphed by breaking out of a potentially ugly double top pattern. This raging bullish sentiment pretty much sums up last week’s stock market actions.

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