It’s comforting to read news articles and commentaries given the new all-time highs. At least I know I’m not the only one whose confidence in the market is shaky over those “puzzling new highs” or for those who are more into “intriguing, mysterious stuff” how’s this — a fund manager’s outlook on stocks is “bearishly bullish”. I can tell you I have the same feeling as he does. (Confusion?! HAHAHA) This means,I’m seeing the growth in the US economy happening, plus stimulus in Europe, the trickle effect to the world economy is also in the cards BUT the growth is in baby steps, not in leaps and bounds and that’s where the cautiousness is coming from because like what had happened in 1st Quarter GDP, the growth can easily turn negative. And not to forget, watch out for the horse might get ahead of its cart and get overvalued. But the outlook is justified by what was explained as the “3 legs” of bull market in equities which are — Liquidity, Growth and Valuation. So check out the video below.
I am going with the idea that the bull market is continuing though a somewhat tame bull market, — so got some positions on undervalued stocks (BHP is at 13.50 PE) to ride the uptrend but still maintaining strict risk management through position sizing. I’ve also been eyeing new stocks with strong interest like Facebook which is very strong in mobile and internet media, however, finding that it has not moved with the market (NASDAQ) index in its recent highs, need to verify the performance growth … it is looking to me like a “buying opportunity” as the mobile revenue continues to increase.
FACEBOOK video
Bull Market runs:
