US results continue to come thick and fast…not sure which one was thick and which one was fast but nonetheless they are proving a support for equity valuations…the market moved quietly higher last night overseas even ‘Zombieland’ was slightly better ,the latest bond auctions in Europe went off ok and the US jobs numbers were pretty good so all is right with the World..even the VIX dropped below 20 !Corporate results in the US are meeting or beating expectations (admittedly low expectations) so the market is starting to look for positives rather than the negatives. Kodak filed for bankruptcy..hard to believe that they were once the leaders in digital technology but didn’t see a future in it!!Come on guys it was there in black and white!
Resource stock will continue to find favour with BHP,RIO and other big resource stocks to rise albeit in quiet trading..I have a piece in WPL today and would be a buyer on further weakness..target around 32.50 to start getting interested.
Yesterday the economists distinguished themselves with their jobs prediction..loss of 30,000 jobs in December a little worse than the 10,000 added they were expecting.. Certainly January jobs numbers will be even worse as retailers cut back on staff as well…where have these analysts been living..times are tough..the job ads in the Manly daily are shrinking and have been for two years..the boom is in WA and that’s it…The RBA have totally misread the economy yet again and the Government workplace laws are making it tough for SME’s to employ people…the miracle economy is slowing faster than a …….with the forthcoming redundancies in the banking sector and the rise of the AUD ,high priced holiday homes will be seller no buyer and the property market will creek as big ticket properties come under renewed pressure..not good and even if the RBA does cut ,there is no guarantee that the banks will do the same..so pain will be inevitable…the miracle may be about to come unstuck…HOWEVER the returns in share market around the World do compare favourably against bond rates. This will ensure some fresh money flows into the equity markets..expect the markets to be squeezed higher although Chinese New Year next week will mean quiet times!
Spotted this in the SMH-Must be true!!!The smarter you are, the more stock you probably own, according to researchers who say they found a direct link between IQ and equity market participation.
Back on Sky TV this afternoon so tune in for the pearls!
Chinese New Year so “Xin Nian Kuai Le”
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