Today has also been one very interesting day for the financial markets.
With time running out for AIG's vault, it seems like all eyes are looking at the Fed to provide a bridging loan to lend the company a helping hand. Additionally, if rumours are right, WAMU may soon get off the radar screen if JPM has interest in them.
Looking at the market on the macro level, we have witnessed the more than $600B in share value that got worthless or disappeared in the financial and banking sector, and historically, equity markets on average drops 26% during a recession, where now S&P 500 has already reached 23%. In addition, current dividend yield of some stocks have begun to surpass yields from Treasury Bills products. One more evidence is taken from Thomas J. Lee, JPM Chief US Equity Strategist in New York, net cash balances in margin accounts at NYSE member firms are highest in at least 50 years, citing $932B has poured into money fund since Aug 2007.
So do you think this could be a possible turn?
For my personal preference, I will be keeping a good eye on medical, pharmaceutical and related industries to start with. For some reason, the value of such stocks tend to get undervalued after financial stocks get a big hitting, as the value of such stocks do get affected by the changes of sentiment of the stock market in general.
Next, I will be back on the saddle to continue market momentum trading, as irrational moves in the market could have been greatly reduced, and therefore making it easier for momentum trades to be made on the FX (specifically GBPJPY/ EURJPY in Asia, and EurUsd/GbpUsd in Europe) and futures markets.
Tell me your views.
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1 Response to "Analysis: Sectors Worth Consideration"Just got bumped into your blog.
Interestingly sincere commentary that I can feel.
I prefer to read your blog from the beginning of its creation, kinda time travel that echoes back those past events.
I got to agree with you. The pharmaceutical industry has much room to grow. Even in 2013, most people know that fast food and carbonated drinks put a heavy toll on our health and this effect will compound over time. Indirectly it translate a great future to pharmaceutical and medical industry. Not least that the insurance premium would raise as well.
The energy sectors is always a hot topic to talk about.
Last few days I heard someone did said, investing on new technology on desalination system for the middle east...or to sabotage it.
Well, I was just an amateur here but I do like to learn more from you.
Found this blog through search on Samuel Tay | LinkedIn
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