Monday, December 10, 2012
Confusion persists over the sustainability of the global stock rally which has not seen a meaningful correction since the key turning point back in March 2009. It's not just about the fiscal situation in the US, stagnant Europe and the slowing growth dragon, we should even keep track of other indicators such a volatility and liquidity. Right now the thing which is common about most popularly watched global markets is that investors everywhere have no clue about the long term. This lack of visibility seems to be the key cause behind the absence of retail crowd. So, we can say that the smart money is at work and that is one key factor why stocks may not get the liquidity gush to keep riding higher. Globally, stock markets should respect the trailing fundamentals and keep their heads below long term resistances especially those that are visible on five year chart. Most markets are flat to 20 percent down on 5 year charts. Popular indices in US and India are outperforming most globally tracked indices. It’s too soon to expect anything meaningful for the bulls coming out from Europe; mood in US may remain sluggish even after the fiscal cliff outcome, and in Asia markets may have rallied a bit too hard. This is surely not the right time to invest in stocks for a short term as valuations seem to be rich amid current political uncertainties, the fact that stocks have given decent gains in past few years, and most importantly retail investor’ is still in his hideout.
Friday, November 30, 2012
Friday, November 23, 2012
Technology Stocks Price Comparison: Performance of Apple, Microsoft and Google since the Lows of 2009
You can clearly see the difference in the stock price performances of leading technology players Apple ($AAPL), Microsoft ($MSFT) and Google ($GOOG) since the lows they made when the markets bottomed back in march 2009. Apple has definitely outperformed in a dramatic way. Apple was up nearly 700% when it was trading above $700, while Microsoft managed to double itself and Google moved as high as 140% from 2009 lows. At present, all the three stocks have given away some gains in the recent market fall. Take a look at the chart before I once again boggle your heads.
Thursday, November 22, 2012
Investors Confused Between Euro Zone Recession, Santa Trade, And The Fiscal Cliff: A Deeper Correction Possible In The Stock Markets?
Investors continue to grapple with economic woes set forth by the troubled Euro zone nations back in 2009. All this while stocks did rally in the US and in many other parts of the world, but the sentiment remained taped despite all the rosy scenarios that played out in between. The unlimited bond buying by the ECB, followed by the announcement of open ended QE3, and the efforts by various central banks including, China and Japan to stimulate economic activity failed to trigger a sustainable rally in the stock markets. Globally, stocks are well below the recent highs (barring a few exceptions) that were seen after the Federal Reserve’s announcement of an open ended QE3. Now, the scenario is once again
Monday, November 19, 2012
The thrill of making money by investing money is something that has definitely lost its luster in the past decade. Investors have been bruised badly by roller-coaster rides in the stock markets globally. Equities unlike their historic performance have been the greatest wealth destroyer since 2006. But the fact of the matter is that there isn't any compelling alternative to stock investing. No other asset class can provide you a cushion of diversification like a portfolio of good quality stocks.