Wrapped
I read a very interesting article today that investors should sell US stocks and buy EU stocks instead, because…. wait for it,,, it is cheap! They cited that at the time the US was at the same “cheap” levels in the depths of the Global Financial Crisis, it has rallied strongly and predicted the same at the EU, “ECB’s stimulus package includes targeted loans, record-low interest rates, and the purchase of securitized debt. Economists surveyed by Bloomberg News predict the central bank will eventually embark on sovereign-bond purchases”. While the US-style QE of “bond purchases” apparently did it’s work of stimulating the economy, I am not very sure that the EU will be a good buy right now. That’s going to be extremely contrarian in my view, and if you are going with this idea, just be careful and be very patient! US growth stalled for a good 4 years before it started growing well enough to be taken off life support …last year….
OK, so where does this lead us? Another rally in US, haven’t we seen record highs already? I think it’s going to be tricky and volatile but we’re still on our way up baby! What with these mega-deals happening (oil companies, pharamaceutical companies, tech companies) that are very good for sentiment, and of course, the US staying in that “sweet spot” of not-too-hot-growth in low inflation environment and increasing jobs. And don’t forget that Christmas is around the corner and the “Santa Claus rally” and “January Effect” will be upon us. My hot tip – stay with the strong sector that benefit from the merry season’s retail upsurge, those that benefit from weak oil prices and the ones that actually beat earnings and reported rise in revenues for 4Q and reasonable valuations. Plus of course, my thoughts is that a volatility-based system will make the most money,,,
Last weekend I had the pleasure of conducting the workshop for “Investing in the US Stockmarket” and I have to say we had some very lively Q and A and very committed participants, some who had attended my past workshops and a few flying in from very far places like Kuwait, Davao (in Southern Philippines), and Bicol Region. One even had sweets for me, and it is much appreciated! More more more 🙂
The tools and resources, slides and Live Trading link was sent out today by Learning Curve, if you don’t have it, check on SPAM folder or let me know! Email at charmel@highheeledtraders.com
HOT OFF THE PRESS! S&P 500 hits another record high on Nov 18.
http://www.bloomberg.com/news/2014-11-18/u-s-index-futures-little-changed-after-s-p-500-extends-record.html
http://www.bloomberg.com/news/2014-11-17/jpmorgan-says-sell-u-s-stocks-buy-europe-on-valuation.html
