Through the looking glass this morning,
They say that the only reason Economists exist is to make weather forecasters look good..well the big economists in the World at the IMF and World Bank have been downgrading their 2012 forecast rapidly(and they have been so right in the past…NOT!)..however despite this equity markets are rallying..VIX is still down around 20 and the World is now half full not half empty…Chinese slowdowns are seen as a positive and the Greek Debt problem is going to be solved shortly(again) with bond holders happy to take a huge 70% haircut…yeah right!!
The sad fact is that with yields of Sweet FA on most bonds around the World ,equities are starting to look attractive..Dow is 12500 FTSE is 5700..we are 4200…still puzzled…the first few months of 2012 may be positive as they were last year until the Easter wobbles..suspect the same may be true this year…I still expect our market to push up to 4300 pretty easily as we head into reporting season in Feb..
The Banks will lag as they are under funding pressures but the resource story remains good and so BHP/RIO will lead the way..Yield stories will continue to attract buyers so TLS will be supported but not stellar as risk appetite returns…
Gold will continue to push up and I like Oil especially if the Iranian situation flares up.
So what to buy…Resources may be the pick…BHP,RIO will lead the way..FMG are a buy on weakness..NCM for a gold rally …
I continue to be somewhat cynical on the whole ‘Zombieland’ rescue but like the rest of the World at the moment I am happy to suspend my disbelief and drop down the rabbit hole to ‘Wonderland’ rather than the one of the walking dead!!
Chinese New Year next week so nothing from the Middle Kingdom..Metals will be quiet..dollar pushing up..
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