Overpriced
November 17th 2006 00:31
Can the momentum sustained the run up of 10% gained by the market during the month of October? Sentiments are not tallying the direction as fund managers see the market as being overpriced relative to corporate earnings to be lower than expected. Likewise, the Portfolio 1.5 - EW also had its share of run ups with the returns peaked at 32.64% recently but have since seen a decline.
The US stockmarket gained grounds yesterday after the Feds left the rates unchanged but a slowdown in the US economy is expected for the coming year which does not augur well for the world and the local markets. Based on a forecast by Merrill Lynch the US economy is expected to grow 1.9% next year. A futher indication of the slowdown was provided by China with its October production down due to falling demands from the US.
The signs are backing up the September post on US economic slowdown. See here:
Looming US recession.
The Portfolio 1.5 - EW shedded 1.78% at closing yesterday with profits down by $789 to $11,337, after deducting first round of transaction fees of $30 per trade. Closing value of the portfolio is $54,424.
As the market being expensive relative to its fundamental value, perhaps is time to do some shortings to take advantage of the reverse but nonetheless outlooks are not so promising.
Meanwhile, the Aussie market is expected to be lackslutre today as metal prices were mixed overnight.
The Birth of Portfolio 1.5 - EW
The US stockmarket gained grounds yesterday after the Feds left the rates unchanged but a slowdown in the US economy is expected for the coming year which does not augur well for the world and the local markets. Based on a forecast by Merrill Lynch the US economy is expected to grow 1.9% next year. A futher indication of the slowdown was provided by China with its October production down due to falling demands from the US.
The signs are backing up the September post on US economic slowdown. See here:
Looming US recession.
The Portfolio 1.5 - EW shedded 1.78% at closing yesterday with profits down by $789 to $11,337, after deducting first round of transaction fees of $30 per trade. Closing value of the portfolio is $54,424.
The winner stocks are highlighted in yellow.
As the market being expensive relative to its fundamental value, perhaps is time to do some shortings to take advantage of the reverse but nonetheless outlooks are not so promising.
Meanwhile, the Aussie market is expected to be lackslutre today as metal prices were mixed overnight.
The Birth of Portfolio 1.5 - EW
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