|
Back
 x 0
 x 0
|
I dun think there is such a thing as "calculate roughly need how many lots to increase or decrease the price ? e.g up or down $0.005".
Price up or down depends on the buy/sell q, when the buy q is exhausted, the buy q drop one level n vice-versa n price moves up or down based on sentiments n whether buyers or sellers overwhelm the transactions, if more buyers keep buying up, price will go up n vice-versa.
aircraft ( Date: 16-Sep-2009 13:00) Posted:
Hi Richtan,
Do you know how to calculate rouoghly need how many lots to increase or decrease the price ? e.g up or down $0.005 in this case. Thanks
|
|
|
|
Good Post
Bad Post
|
x 2
x 1
|
"Time n Sales" shows heavy buying-up of 1400 lots at 0.86:
| DAY HIGH : 0.865 |
NET CHANGE : 0.015 |
TOTAL VALUE : 4,974,635 |
| DAY LOW : 0.845 |
LAST DONE : 0.860 |
VOLUME : 5,815 |
|
|
richtan ( Date: 16-Sep-2009 12:28) Posted:
"Trade Summary" at this point in time shows heavy buying-up, but of course, nothing is guaranteed, may change, so dyodd n BOSAYOR:
| WEIGHTED AVG PRICE : 0.8553 |
LAST DONE PRICE : 0.860 |
| SPREAD/PRICE RATIO : 0.0000 |
AVG TRADE SIZE : 52.178 |
|
|
|
|
|
|
Good Post
Bad Post
|
x 0
x 0
|
"Trade Summary" at this point in time shows heavy buying-up, but of course, nothing is guaranteed, may change, so dyodd n BOSAYOR:
| WEIGHTED AVG PRICE : 0.8553 |
LAST DONE PRICE : 0.860 |
| SPREAD/PRICE RATIO : 0.0000 |
AVG TRADE SIZE : 52.178 |
|
|
|
|
Good Post
Bad Post
|
x 0
x 0
|
 When 2 big brothers quarrel, the small bro suffers.
des_khor ( Date: 16-Sep-2009 11:01) Posted:
Two big brothers quarrel ma.... so they try to play out each other lo!
Snappers ( Date: 16-Sep-2009 10:59) Posted:
noticed something ironic for a long time... whenever DOW goes up... SSE comes down... and vice versa....
|
|
|
|
|
|
Good Post
Bad Post
|
x 0
x 0
|
Fisher Sees V-Shaped Recovery for Global Stocks, Led by China
2009-09-15 22:16:10.42 GMT
By Tian Huang and Catarina Saraiva
Sept. 16 (Bloomberg) -- Global stocks are in the middle of a
"V-shaped recovery," led by emerging markets, that will last for at
least another six months, billionaire investor Kenneth Fisher said.
"The bigger and uglier the bear market, usually the bigger the V,"
Fisher, who manages $28 billion as chief executive officer of Fisher
Investments Inc. in Woodside, California, said in an interview in New
York.
"A normal V-shaped recovery lasts one year, and the current rally
started in March."
The MSCI AC World Index, which includes both emerging and developed
market stocks, has rallied 65 percent since reaching a six-year low on
March 9. The Standard & Poor's 500 Index has surged 56 percent over the
same period. The Shanghai Composite Index, the best performing benchmark
measure globally a year after the collapse of Lehman Brothers Holdings
Inc., has risen 43 percent.
Fisher predicts Chinese stocks will lead the bull market in global
equities, as a 4 trillion yuan ($586 billion) stimulus package and
record lending spurs growth in the world's third- largest economy.
Economists anticipate China's gross domestic product growth will
accelerate to 9.5 percent next year from 8.3 percent in 2009, according
to a Bloomberg survey conducted the week ended Aug. 28.
"It's perfectly justified why China has been the best performing
market since the Lehman collapse," Fisher said. "It has a lot of
monetary and fiscal stimulus behind it. China is the driver of the V."
Fisher has an "overweight" allocation for Chinese, Brazilian and
Indian stocks. He downgraded Russian equities to "underweight" this
month, saying gains of more than 90 percent for the country's stock
indexes this year have made them expensive.
For Related News and Information:
Top stories in emerging markets: TOP EM <GO> Stories on ADR share moves:
TNI ADR MOV <GO> Stories on China stocks: NI CHS <GO>
--Editors: Allen Wan, Kara Wetzel
To contact the reporters on this story:
Catarina Saraiva in New York at +212-617-2300 or
Asaraiva5@bloomberg.net; To contact the reporters on this story:
Tian Huang in New York at +1-212-617-2703 or thuang57@bloomberg.net.
To contact the editor responsible for this story:
David Papadopoulos at +1-212-617-5105 or Papadopoulos@bloomberg.net
|
|
Good Post
Bad Post
|
x 0
x 0
|
|
|
Good Post
Bad Post
|
x 0
x 0
|
From http://skybach.wordpress.com/
September 13, 2009 • 11:34 am
The typical “investors” will adopt a buy and hold strategy.
Such a strategy develops because from literature and common speak, “investors” are seen as having little involvement in the market after having done their “research”.
On top of that, from some other sources, Technical Analysis is often frowned upon because it is often associated with intraday traders, quick and dirty money, complex, unreliable and bankruptcy in the end.
These 2 main misconceptions and misinformation has led many people to adopt extreme ends of fundamental analysis and technical analysis.
it is the former. “Investors” adopting the buy and hold strategy are usually “losers” with no sell strategy. The main purpose of being in the market is to make money. Without a sell strategy, the “loser” usually sells when their investments shows a fundamental change, which usually is known after their investment has shown a loss.
Fundamental analysis is ideal for stock picking, but take those research material with a pinch of salt. Technical analysis is still needed to verify that the stock is moving.
Likewise, technical analysis is also needed to inform the investor that the stock has stopped moving for the long term. It is only this way that the long term investor is able to cash out before the investment becomes a liability.
Technical Analysis need not be complex. The complexity is often increased with increased usage of indicators and constant switching between them. Technical analysis can be simple if one limits to not more than 5. Personally I will recommend at most 3 that you are most comfortable with and master them. Simple charting like trendline drawing, identification of support and resistance level is more than enough for the average investors.
Technical Analysis need not be for the short haul and can be used for medium to long term.
Whether it is short term depends on whether the stock is a good trending stock. If a stock oscillates, using Technical Analysis will certainly give alot of buy and sell signals.
A good trending stock will usually dip very little in a market correction. Therefore investors should do a final round of filtering based on their trend. Once the trend ends, investors should just cash out.
Filed under: Thots
|
|
Good Post
Bad Post
|
x 0
x 0
|
From OCBC Investment Research:
Midas's firm order book of 1.4 billion yuan (S$296 million), more anticipated contract wins in Sept - Nov 2009... will serve to under-gird valuations"
|
|
Good Post
Bad Post
|
x 0
x 0
|
From "Lim & Tan securities":
We remain positive on Midas given its robust
growth prospects, underpinned by its robust order
books of RMB1.4bln as well as the robust prospects
of its 32.5% owned subsidiary company, also
underpinned by solid order books of RMB4.5bln.
And this in turn reflects the government’s active
efforts to support the railcar industry in China to
reduce transportation bottlenecks as well as reduce
transportation costs. Rail transportation is much
cheaper than air travel and is much safer and causes
much less pollution than automotive transportation.
The company will be increasing their production
capacity by 200% in the next 2 years to cope with
the strong order flows. Its PE of 20x remains
undemanding compared to its expected growth rate
of 40-50%.
|
|
Good Post
Bad Post
|
x 0
x 0
|
U.S. Stocks Have ‘A Lot of Room to Run,’ Birinyi Says (Update1)
By Sapna Maheshwari and Margaret Brennan
Sept. 15 (Bloomberg) -- U.S. stocks are in a bull market after rallying as much as 55 percent from a 12-year low on March 9 and have “a lot of room to run,” investor Laszlo Birinyi said.
The advance in U.S. equities shows that the longest recession since the 1930s is over, and investors who wait to buy stocks until the National Bureau of Economic Research declares the contraction finished will miss out on gains, Birinyi said.
“I don’t know how you could wish for a better set of circumstances,” Birinyi, the founder of Westport, Connecticut- based research and money-management firm Birinyi Associates Inc., said in an interview with Bloomberg Television. “The economy is probably a little bit better than most people are giving credit.”
The S&P 500 has rallied for the past six months as economic reports from U.S. home sales to manufacturing in China signaled the global recession is ending.
Birinyi recommended buying financial stocks that are “strongly outperforming,” citing Wells Fargo & Co., JPMorgan Chase & Co., and American Express Co., which topped analysts’ estimates for adjusted second-quarter profit. Financial stocks in the S&P 500 have climbed 135 percent since March 9, the best performance among 10 industries and 60 percentage points more than industrial shares, the next best-performing industry.
An advance in copper prices suggests the economy is recovering, Birinyi said. The metal’s price has doubled this year, driven by record purchases by China in the first half.
Birinyi said on May 20 that the S&P 500 would climb to a record 1,700 in the next two or three years, an 88 percent gain from its close that day. The index has rallied 16 percent since.
To contact the reporters on this story: Sapna Maheshwari in New York at smaheshwar11@bloomberg.net; Margaret Brennan in New York at mbrennan25@bloomberg.net. Last Updated: September 15, 2009 12:37 EDT
|
|
Good Post
Bad Post
|
x 0
x 0
|
U.S. Economy: Retail Sales Rise More Than Forecast, Autos Jump
By Timothy R. Homan
Sept. 15 (Bloomberg) -- Sales at U.S. retailers surged in August by the most in three years, showing unexpected strength in consumer demand that extended beyond auto purchases spurred by the government’s “cash-for-clunkers” program.
The 2.7 percent increase exceeded economists’ forecasts and followed a 0.2 percent drop in July, Commerce Department figures showed today in Washington. Purchases excluding automobiles climbed 1.1 percent, topping the highest forecast.
Treasuries declined as the report eased investor concerns that consumers will make a limited contribution to the recovery, leaving the economy dependent on government spending a year after the collapse of Lehman Brothers Holdings Inc. Morgan Stanley was among banks and investment firms raising forecasts for third-quarter economic growth after the report.
“The most remarkable thing is it wasn’t all cash-for- clunkers,” said Robert Stein, a senior economist at First Trust Advisors LP in Lisle, Illinois, who forecast a gain of 2.9 percent. “The consumer is in recovery and the U.S. economy is in recovery.”
The yield on the 10-year Treasury note rose one basis point, or 0.01 percentage point, to 3.43 percent at 11:35 a.m. in New York. It climbed as high as 3.49 immediately after the report.
Separate reports today signaled manufacturers will help the economy pull out of the worst slump since the Great Depression as they ramp up production after a record inventory drawdown in the first half of 2009.
Smaller Stockpiles
Business inventories declined 1 percent in July, exceeding economists’ forecasts, to $1.33 trillion, the lowest level since March 2006, a Commerce Department report showed today. Sales climbed 0.1 percent after a 1.1 percent gain in June.
Manufacturing in the New York region grew in September at the fastest pace in almost two years, according to the Federal Reserve Bank of New York. The New York Fed’s general economic index increased to 18.9 from 12.1 in August, the bank said today.
Retail sales were projected to rise 1.9 percent after an initially reported 0.1 percent decline in July, according to the median estimate of 73 economists in a Bloomberg News survey. Forecasts ranged from gains of 0.8 percent to 3.8 percent. Last month’s gain was the biggest since January 2006.
Excluding automobiles, the increase in sales was the biggest in six months. Purchases minus cars were forecast to increase 0.4 percent, according to the survey median.
The auto plan, which ended Aug. 24, offered buyers discounts of as much as $4,500 to trade in older cars and trucks. The program prompted almost 700,000 purchases, the Transportation Department said.
Jobs Lost
The economy has lost about 6.9 million jobs since the recession started in December 2007, the worst of any downturn since World War II. Gross domestic product contracted at a 1 percent annual rate in the second quarter, the fourth consecutive drop.
President Barack Obama yesterday said job losses are “bottoming out” and pointed to gains in exports and manufacturing as signs the U.S. economy is expanding again.
“I don’t think we’re out of the woods yet,” Obama said in an interview with Bloomberg News. “What we have to be careful about is taking the crutches away from the patient too early.”
Fed Chairman Ben S. Bernanke added to the note of caution as he answered questions today following a speech at the Brookings Institution in Washington.
Bernanke
“Even though from a technical perspective the recession is very likely over at this point, it’s still going to feel like a very weak economy for some time,” he said.
Economists also warned that stagnant wages and a loss of wealth resulting from the drop in home prices will probably restrain consumer spending in the months to come.
“All the reasons for concern about consumer spending are still out there,” said Louis Crandall, chief economist at Wrightson ICAP LLC, a Jersey City, New Jersey-based research firm. “If there is any sign of resilience in September, that will be very encouraging.”
Sales at automobile dealerships and parts stores jumped 11 percent, today’s report showed, the most since October 2001 when carmakers such as General Motors Corp. offered zero- percent financing to spur sales following the terrorist attacks the previous month.
Service stations, clothing, sporting goods and department stores all recorded gains of more than 2 percent last month, today’s report showed. Only furniture and building-material stores showed losses.
GDP Measure
Excluding autos, gasoline and building materials -- the retail group the government uses to calculate gross domestic product figures for consumer spending -- sales increased 0.7 percent, after a 0.3 percent decrease. The government uses data from other sources to calculate the contribution from the three categories excluded.
“This is a sign that consumers are beginning to feel a little more comfortable about the economy,” Rebecca Blank, Commerce undersecretary for economic affairs, said in an interview. “I wouldn’t want to say that we are solidly there yet. We need several more months of these types of numbers.”
Consumer spending, which accounts for 70 percent of the economy, is projected to grow at a 1.7 percent pace from July through September and then slow to 1 percent in the last three months of the year, according to the median estimate of economists surveyed this month by Bloomberg News.
Purchases rose at an average 3.5 percent pace in the decade before the current recession began in December 2007.
Economists at Morgan Stanley raised their estimate for third-quarter growth to 3.9 percent from 3.7 percent after the sales report.
Beige Book
In the Fed’s Beige Book business survey, published two weeks before officials meet to set monetary policy, the central bank reported “flat” retail sales in July and August and cited some auto-industry contacts as saying the cash-for- clunkers effect may be temporary. The Fed released the survey on Sept. 9.
“Despite some encouraging signs in the global economy, it is difficult to predict the timing and pace of any economic recovery,” Alan Graf, chief financial officer for FedEx Corp., said last week in a statement. FedEx, the second-largest U.S. package-shipping company, said first-quarter profit topped its forecast.
FedEx and larger rival United Parcel Service Inc. are considered proxies for the U.S. economy because they handle almost 80 percent of domestic package shipments.
To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net Last Updated: September 15, 2009 11:48 EDT
|
|
Good Post
Bad Post
|
x 0
x 0
|
Bernanke Says U.S. Recession ‘Very Likely’ Has Ended (Update2)
By Scott Lanman and Craig Torres
Sept. 15 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the worst U.S. recession since the 1930s has probably ended, while warning that growth may not be strong enough to quickly reduce the unemployment rate.
“Even though from a technical perspective the recession is very likely over at this point, it’s still going to feel like a very weak economy for some time,” Bernanke said today at the Brookings Institution in Washington, responding to questions after a speech.
The remarks are Bernanke’s most explicit statement that the contraction that began in December 2007 is over. They echoed comments yesterday by San Francisco Fed President Janet Yellen and followed a report today showing retail sales rose last month by the most in three years, adding to evidence of a recovery.
“Unemployment will be slow to come down” if growth turns out to be “moderate” and not much more than the economy’s underlying potential, Bernanke said.
The central bank has kept the benchmark lending rate as low as zero since December and in August said “exceptionally low” rates are likely warranted for “an extended period.”
The policy-setting Federal Open Market Committee also said in its Aug. 12 statement that there were signs that “economic activity is leveling out.” The Fed’s Beige Book report last week said that 11 of its 12 regional banks reported signs of a stable or improving economy in July and August.
‘Wide Array’
Yellen said in a speech yesterday that the U.S. summer “likely marked the end of the recession, and the economy should expand in the second half of this year. A wide array of data supports this view.”
The unemployment rate reached 9.7 percent in August, a quarter-century high, and employers have eliminated almost 7 million jobs since the recession started, the biggest drop in any post-World War II economic downturn. Banks worldwide have recorded more than $1.6 trillion of losses and writedowns since the start of 2007, data compiled by Bloomberg show.
The central bank in March authorized $1.45 trillion in purchases of mortgage-backed securities and other housing debt this year. Policy makers decided last month to taper off a $300 billion program buying U.S. Treasuries through October, while debating a similar move for MBS purchases. Bernanke convenes the next meeting of Fed policy makers Sept. 22-23 in Washington.
The economy will rebound at a 2.3 percent pace next year, according to the median estimate in a Bloomberg News survey of economists. The growth rate won’t be fast enough to lower the unemployment rate below 9 percent, the economists predict.
‘About Right’
“The chairman got it about right,” Glenn Hutchins, co- founder and co-chief executive of Silver Lake, a private investment firm with $13 billion under management, said on a panel following Bernanke’s speech.
“We are experiencing stability both in financial markets and underlying corporate performance,” he said. “But the overwhelming sense of market participants right now is that we are at a very low level of activity.”
Before becoming a central banker, Bernanke, a former Princeton University economics professor, served on the National Bureau of Economic Research’s business-cycle dating committee, the group that determines the dates of U.S. recessions.
Stanford University Professor Robert Hall, the panel’s current chairman, said in August that declaring the recession over may take more than a year because of the risk that recent signs of stabilization will prove short-lived.
Sales Rise
Sales at U.S. retailers rose 2.7 percent last month, led by a jump in auto purchases as consumers took advantage of the government’s “cash-for-clunkers” program. The increase exceeded the median forecast of economists surveyed by Bloomberg News and followed a 0.2 percent drop in July, Commerce Department figures showed today in Washington.
Responding to a separate question, Bernanke said he’s “pretty optimistic” on chances for an overhaul of financial regulations given a crisis that was “too big a calamity” to ignore. “I feel quite confident that a comprehensive reform will be forthcoming,” Bernanke said.
Congress is preparing the biggest overhaul of U.S. financial regulations since the 1930s, when the Fed was reorganized. The U.S. Treasury proposes to give the Fed greater authority over the capital, liquidity, and risk-management standards at the largest financial firms. Congressional leaders haven’t supported that proposal and are considering giving broader authority to a council of regulators.
“The problem we had in part was the lack of systemic oversight,” President Barack Obama said in an interview with Bloomberg News yesterday. “We want to have a systemic-risk regulator,” he said, adding that “the Fed is best equipped to do this.”
To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.net; Scott Lanman in Washington at slanman@bloomberg.net. Last Updated: September 15, 2009 12:55 EDT
|
|
Good Post
Bad Post
|
x 2
x 1
|
Yes, u r right.
Tats why whenever there is a breakout, unless it is supported by high vol (unlikely to be a fake if there is high vol), otherwise, I will wait for next day confirmation b4 taking any action.
keepnosecrets ( Date: 15-Sep-2009 15:06) Posted:
| Tks Rich Tan. So normally fakes are intended to mislead before they revert to the correct trend? |
|
|
|
Good Post
Bad Post
|
x 2
x 2
|
It is true tat TA can be manipulated in the short-term but very unlikely for the long-term trend, thus why there is such thing as head fakes (false breakout) n fake candles n at times need to wait for confirmation candle or it must be supported by vol n better still if confirmed with other lagging indicators.
keepnosecrets ( Date: 15-Sep-2009 14:40) Posted:
| It is true that TA can be manipulated. All you need is a worksheet like Ms Excel, and you can experiment with the moving averages. The next day figures can be tested to see what price to cross the MAs, things like that. But of course if there is no manipulation of the charts, you can rely on it after confirmation a day or two later in conjunction with other indicators. |
|
|
|
Good Post
Bad Post
|
x 1
x 1
|
"Trade Summary" at this point in time still shows more buying-up, but of course, nothing is guaranteed, may change, so dyodd n BOSAYOR:
| WEIGHTED AVG PRICE : 0.7212 |
LAST DONE PRICE : 0.725 |
| SPREAD/PRICE RATIO : 0.0000 |
AVG TRADE SIZE : 44.303 |
|
|
richtan ( Date: 15-Sep-2009 10:17) Posted:
"Trade Summary" at this point in time shows more buying-up, but of course, nothing is
guaranteed, may change, so dyodd n BOSAYOR:
| WEIGHTED AVG PRICE : 0.7197 |
LAST DONE PRICE : 0.725 |
| SPREAD/PRICE RATIO : 0.0069 |
AVG TRADE SIZE : 31.987 |
|
|
|
|
|
|
Good Post
Bad Post
|
x 0
x 0
|
"Trade Summary" at this point in time shows more buying-up, but of course, nothing is
guaranteed, may change, so dyodd n BOSAYOR:
| WEIGHTED AVG PRICE : 0.8492 |
LAST DONE PRICE : 0.855 |
| SPREAD/PRICE RATIO : 0.0000 |
AVG TRADE SIZE : 34.306 |
|
|
|
|
Good Post
Bad Post
|
x 0
x 0
|
Hi Bintang,
Many thanks for your reply n analysis.
I wish u well n we HUAT together.
Cheers
Bintang ( Date: 15-Sep-2009 09:49) Posted:
Hi richtan , sorry for late reply . I was almost to go in last week , by this week , Allgreen has pulled back 10 % n may be can slowly accumulate at this stage . From its DMIs , it may go sideway for some times , RSI is neutral at 46 which is suggesting price would hold in the tight range from now . Share price pulled back from the peak at $1.33 to $1.11 is a reasonable 23.6% retracemet . If from here after the consolidation ,it may double its share price in the longer term , so its time to accumulate now .
richtan ( Date: 10-Sep-2009 17:07) Posted:
|
Hi Bintang,
How r u?
I have this counter in my CPF investment, good FA n potential, I m holding this for as long as the long-term trend is up. |
|
|
|
|
|
Good Post
Bad Post
|
x 0
x 0
|
"Trade Summary" at this point in time shows more buying-up, but of course, nothing is
guaranteed, may change, so dyodd n BOSAYOR:
| WEIGHTED AVG PRICE : 0.7197 |
LAST DONE PRICE : 0.725 |
| SPREAD/PRICE RATIO : 0.0069 |
AVG TRADE SIZE : 31.987 |
|
|
|
|
Good Post
Bad Post
|
x 1
x 0
|
Below is my chart analysis for sharing and exchange pointers.
My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA.
If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start
making unconstructive comments and plse do not be so childish or lunatic as to abuse the
rating system by intentionally rating it as "bad post", this is not cursing but Buddhism beliefs
tat intentional bad deeds will accumulate for yourself and your possibly your next generation,
"bad" karma for your "bad" deeds. If u think it is a bad post, then be constructive and kindly
post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR.
|
|
Good Post
Bad Post
|
x 0
x 0
|
U.S. Stocks Extend Global Drop as SLM Leads Financials Lower
By Lynn Thomasson
Sept. 14 (Bloomberg) -- U.S. stocks extended a global drop, sending the MSCI World Index down for the first time in eight days, as SLM Corp. led a slide in financial shares after its debt rating was cut. Treasury 10-year notes fell for the first time in four days amid speculation their recent gains can’t be sustained.
SLM, the student-financing company known as Sallie Mae, tumbled 5 percent Fitch Ratings cut its long-term debt rating. Citigroup Inc. and Morgan Stanley also helped lead Standard & Poor’s 500 Index financial shares, which have more than doubled since March, to the steepest loss among 10 groups. The S&P 500 fell after last week’s 2.6 percent gain left it valued at the most expensive compared with earnings in five years.
“Stocks have probably come too far, too fast,” said Charles Knott, the chief investment officer at Knott Capital in Exton, Pennsylvania, who oversees about $550 million. “We’re concerned about whether the economy is going to be as strong as some people think.”
The Standard & Poor’s 500 Index declined 0.1 percent to 1,041.46 at 12:07 p.m. in New York after last week’s 2.6 percent rally. The Dow Jones Industrial Average fell 0.1 percent to 9583.42. The MSCI World Index of 23 developed markets slipped 0.5 percent.
Global equities also retreated after China, the world’s fastest growing major economy, said it’s probing U.S. sales of chicken and auto products for “unfair trade practices,” two days after the U.S. imposed tariffs on Chinese tires.
The Dow Jones Stoxx 600 Index of European shares fell 0.3 percent. A 51 percent surge since March 9 has driven valuations on the gauge to 46.8 times profit, the highest level since 2003, weekly Bloomberg data show.
Government Bailouts
The MSCI World of 23 developed nations trades at 27.3 times the earnings of its 1,659 companies after a 61 percent advance. Stocks rallied over the past six months as the Group of 20 countries committed $12 trillion to help end the global recession, according to the International Monetary Fund, while the Federal Reserve has held its target rate for overnight lending between banks at near zero to unlock credit markets after the bankruptcy of Lehman Brothers Holdings Inc.
“If you’d asked me to predict what would’ve happened in the year following Lehman, it’s fair to say that I would’ve got the vast majority of it wrong,” Gary Jenkins, an analyst at Evolution Securities Ltd. in London, wrote in a note to clients. “I wouldn’t have thought that equities or credit would have recovered in price and spread terms as quickly as they have.”
Joseph Stiglitz, the Nobel Prize-winning economist, said governments around the world have failed to rein in the banking industry in the year since the collapse of Lehman roiled financial markets. The European Central Bank warned last week that protectionism risks hampering trade and undermining government efforts to resuscitate growth.
To contact the reporters on this story: Lynn Thomasson in New York at lthomasson@bloomberg.net; Daniel Hauck in London at dhauck1@bloomberg.net. Last Updated: September 14, 2009 12:10 EDT
|
|
Good Post
Bad Post
|
|
|
|
