It's about time I do a bit of justice to my readers by posting stock market related write up.
It's has been a while I did not visit bespoke website, finally I did and found this chart. It's quite interesting actually.
Industrials, financials, materials and technology are in oversold territory. The market is clearly taking money off the table because they think the economic slow down is here and more to come. The market is certainly pricing in a slow down in 2H 2011. Oversold may warrant some rebound but the bigger question is: are we going to see a recession again? My take is not yet because you don't raise interest rate when the whole world say we have a weak economy.
What should we do? We all need to sit and wait until the market is tired of the word slow down, then I think we are going to see S & P of 1,350 - 1,400 or Dow 13,9000 or KLCI 1,700. When, probably end of 2011.
2 comments:
So did you buy some P.I.E shares? the market price is below your (previous post) target price right now.
For now, I will staple mah $ to my belly.
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