Friday, April 1, 2011
Dow Jones Transportation Average Index breaks a new high
After all said and done.......the US at the moment is still the biggest economy in the world. It contributes to about 25% of world GDP. The pick up of the economic activities will have positive effects on to the world despite of some set back in Japan or lower targeted growth in China. Overnight in the US, the Dow Jones Transportation Average broke its previous high in February 18, 2011. The index is measuring a group of stocks that is moving goods. Breaking a new high is reflecting the strength of the US economy. I believe we will soon see a new high in Dow Jones Industrials and S&P 500.
I have been skimming finance blogs and found that most them are quite bearish. I still believe it is too soon to fold. However, I do acknowledge that it is increasingly more difficult to pick stocks or a sector(s). If that is so, buying an index that mimicks the FBM-KLCI will solve our stock picking headache and at the same time give us another decent 10% upside from here. I am planning moving cash back to stock as I believe corrections is coming to a temporary end, in not ended already. Good luck.