Investment Chart Kondratiev Wave

Investment Chart Kondratiev Wave

Tuesday, 9 November 2010

good news November 9

o Greece could easily get money at an auction ( € 360 million) for 26 weeks paper.
o Good numbers of Barclays, diminishing fears about the financial position Also some Spanish and Italian banks went up.
o Financials are doing better last week, see break out of e.g. Philadelphia bank index (but no way they are at the April level, what many other sectors have managed). Pessimists say now their easy way to outperform equity indexec is destoyed by underweight of financials. See chart of Strategas.
o Theme of buying hard assets because governments want it found followers in Japan (advice to corprorates: buy assets abroad now the yen is so high).
o More and more positive news about extension of the extension of Bush tax cuts. Extension of one or two years is almost a done deal, also for the rich (maybe the democrats can limit it to poor fellows earning less than $ 1 million a year).
o Popularity of Obama is rising again, with 4% to 47% (approval rate according to Gallop) since the mid term elections last week. This is a leading indicator for the US consumer confidence.
o Growth car sales of China is accelerating again: +27% yoy in October versus + 19% in September.

Until now the financials didn't really participate in the equity rally. People were worried how you can get a nice without financials.These worriesare vanishing (but can return because of worries about Greece, Ireland,Spain or Portugal.

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