Anyone out there know of any firms offering spreads on these emerging market indices?
Russia is trading on an historic multiple of 3 times earnings. If you’re of the opinion the phoenix rising out of the ashes this time round won’t be an American one, this is one market that would be in for a hell of a rebound. Sometime.
Trackback to the Trade2Win forum thread below
I like Ashbaugh, he writes up good clean numbers & articulates conditions required for breakouts quite well. A nice break from the more abstract sections of the technical analysis sphere.
From a sentiment standpoint, analysts need to stop declaring how great this buying opportunity is.
Michael Ashbaugh, The Technical Indicator
He notes also the path of least resistance is down. A statistic from UBS equity analysts would appear to provide quantitative backup to this:
Fundamental concerns remain, however, and are most concentrated around the earnings outlook. Global earnings are down 15% from their peak so far compared to 30%-40% in previous cycles.
UBS Capital Markets
from the blogosphere…
Traders make an in-depth study of a company. They read all the reports, check their books, check for outstanding litigation, mergers/acquisitions in the works, etc. Then they act out of fear or hope. I’m glad I spent all my money on women and booze. Think about it. Think how stupid the average person is. Then realize that half the population is dumber than that.
Quite.
…is that in a capitalist system it will only ever be a temporary measure. Hence it leads to an increase in short-term market opportunism. Look at the performance of those Wall St bank stocks ´protected´ from shorting in the Summer – temporary support until the ban runs out and a massive pay day for the shorters beckons. The new plan, where any stock dropping 20% in one trading session is automatically protected from short selling for the next three, only serves to concentrate the potential timeframe for shorting into either the day of the fall or the day immediately following the 3 day ban.
It highlights the blatantly obvious – it´s not up to exchanges to manage the economy. So they shouldn´t.
Even the buy to hold - short to hedge investors are saying it!
ps Despite being on GAWA duty in the Slovenian Alps, I had to interrupt with a blog post as this is something that really needs knocked on the head. Whatever the governments are going to do about the economy, it´s not the business of exchanges to interfere with market forces.
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