High Heeled Traders

Patience Pays

February 9, 2016

Last week’s wild week threatens to continue this week, and we’ve been having this market condition since January.  While I am seeing this as a bargain-hunting opportunity, I’ve also been saying you need to be smart and know what the market is doing, what’s behind the moves.  Interest rates rising in the US Fed, China stockmarket instability, oil price declines – those are big issues, and as yet, haven’t been resolved, and notice, the risks are spreading > like from energy sector to financial sector.  I get asked, isn’t low oil prices good?  Consumers are definitely happy to pay less!   I said indeed  oil prices  is good for consumers, so there is your opportunity.  However, what’s happening now is that the low oil prices has gone down so much that there is a tendency for high-cost producers  to fail paying their debts and that’s the risk spreading to financial companies.   Oil producers dividends are also on the line so that’s more pain for  the energy sector.  Now with all these risk spreading, what we are seeing is that other “profitable positions”  like in those FANG stocks, are being sold also.  I shared in my talk last weekend that we are faced with global growth risks yet there are still something the governments (like China and the US) can do – in support of their economies —  so we need to watch out for their policy statement  Anyway, the prevailing market condition is bearish and if anyone does want to get into bargain hunting,  be sure those are the ones performing in bearish conditions.  Like utility companies, consumer necessities etc.   We also need to stock on patience, for sure, patience is needed in this market.

I’m getting some virus / adware popping up so this will be short, pls


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