14-OCT-16 PFS market analysis. We will post regular analysis of the market: KNOWLEDGE SHARING
HERD MENTALITY:-) until last week world seemed to be bullish and everyone were of the view of buy. Now last 3 days everyone who were bullish are off the screen. Current downtrend in the market is all about 1) Rise in crude which will be negative for emerging markets 2) Slowly buy steadily rising US treasury yields for the last 3 weeks from 1.5 to 1.75 suggesting a hike in interest rate from FED very soon. 3) Pound weakening a phenomenon yet to be ascertained for whom it will benefit . But for sure it will add lot of tourism to the Empire. 4) Gold correction itself saying that safe heaven bets have unwound and risk on trade will soon come back.
Key notes:-) nothing much to happen but markets to consolidate as all the short term bullish bets are getting unwound and will create a panic situation in markets. World War III again its an event which will effect each and everyone in the world why to worry now,let that happen when it happens 🙂We don’t really believe its in the offing.
Focus on good quality stocks with earnings visibility and cash flow visibility. Mid caps and small caps will be the way to go with select large caps. Risk reward in short term is not beneficial and any correction try to pick value stocks.
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