Wednesday Outlook: Commodities, Emerging Markets 11 comments
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That should do it for today. Investors are unsettled about a course of action. They cheered a benign Gustav aftermath as energy prices continued their slide. But the contagion to other commodity sectors is dramatic and caused by a weakening economy - hence, the selling.
It’s a short week but we’re not off to a great start. The trading desks can have fun messing around with financials and homebuilders for example. But these are best left to the traders for now. Let’s see what happens.
Have a pleasant day.
Disclaimer: Among other issues the ETF Digest maintains long or short positions in: IWM, UWM, QQQQ, QLD, IVE, XLY, XLV, RXL, XLP, UGE, DVY, UUP, FXE, DRR, FXA, GLD, DZZ, DBC, DEE, USO, UNG, EFA, EFU, EEM, EEV and FXI.
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This article has 11 comments:
For all of the nonsense ,FRE was able to raise (yesterday)1 billion dollars via reference note ,without any problemsw.In fact it had raised 43 billion dollars in 2008 via this vehicle. The FNM is doing fine .Both agencies have reserves abouve the requirement level, but the "bears " continue to distort the issues .MBIA had managed to write some relevant business and the AMBAC had "restructured" to be in a position to write new business.
The oil speculators have managed to spike the price of crude by spreading fear in the market by comparing every hurricane to Katrina.
Hurricane came and went ,the damage is insignificant and the oil prices have tumbled.
Now I suppose we will have to listen to the "experts" ,telling us about the upcoming OPEC meeting implying that the OPEC will cut the output.In the meantime Libya had already stated that it will not reduce its crude production.
The housing sector is showing signs of consolidation/stabilit... and the mega dollar inflows in the period ahead ,will cause a major price rebound.As it is ,we have seen foreign interests buying some "interesting" commercial properties in the U.S.The economic/political risks outside U.S will enhance dramatically demand for the dollar assets specifically the equities and the real estate (relative value assets).
What we need is more time(lag) to allow the fiscal and the monetary implemented measures to add to the economic jolt.
The time for concern was at least two years ago when the "financial" and the economic risks were becoming evident.
One more time .In June of 2005 ,in an interview with Mark Gilbert (Bloomberg- London) I have expressed my concerns about the issues we have faced to date.On September 18 ,2007 I have reiterated concerns during an interview with Brian Sulliovan (Bloomberg -TV) .
Now that all of the problems have been identified and are being addressed ,I am quite confident that the worst is behind us.
Europe and the Emerging markets are the areas of concern.
In fact I believe that we are in the process of market /economic consolidation which will lead to unprecedented economic rebound and the stock market rally.