I'm seeing some dark clouds on the horizon just judging from the recent price action. In the intermediate to longer term time frame I think the markets will have a higher chance of moving lower. Just the economic data points coming in seem to suggest that the government and central bank induced pop in growth is now over and we are seeing very sluggish growth rates. Still there are a lot of companies that are flush with cash and you seeing evidence of this in the form of takeovers and buyouts recently. Thus this should be supportive of equity prices and valuations.
I remain in the range trading camp but we could see the SPX trade back down in the 1010 to 1070 range.
Hi MC yes it's a mass psychology thing and I concur with your sentiment.
ReplyDeletedP in Chiang Mai
P.S your recent exams - were they to do with reading and interpreting company financials?
Hi dP,
ReplyDeleteLucky you in Chiang Mai! Yes my recent study was to do with studying company financial statements and using ratio analysis.
Aha :) Company Directors stuff. (all those 'froggy' sounding terms like EBIT, NPAT, NOP...) That's what I have touched on. For myself it's only 'broad brush strokes', to try and read between the numbers and project forward from the historical accounts rendered. As we know, the figures, although interesting, do not guarantee future performance, although they can give a snapshot as to the 'health' of the Entity.
ReplyDeleteCheers
dP