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Jan. 24, 2014 3:43 PM ET
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Long/Short Equity, Portfolio Strategy

Seeking Alpha Analyst Since 2008

Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political, and general opinions by several prestigious news organizations. Currently, Mr. Payne is a contributor to the Fox News Network and Fox Business Network. He also hosts his own radio show on KFIAM 640 every Saturday from 2-4pm PST. Mr. Payne recently released his first book entitled Be Smart Act Fast Get Rich. Our all-star analytical team is called first when the media needs to know. We are regularly featured on several well respected finance-oriented radio and television programs such as Fox, CNBC, BNN, WSJ to name a few and widely recognized in the media as a leaders in the analyst community. In addition, Wall Street Strategies is part of Factset, Jaywalk, and Thomson-Reuters Consensus Estimates. Meet our analysts: Brian Sozzi is an equity research analyst specializing in the softline/hardline goods sectors of the retail industry for Wall Street Strategies Inc. Mr. Sozzi graduated Summa Cum Laude from Dowling College, receiving his Bachelors of Business Administration with a concentration in Finance and Accounting. Routinely sought after as a trusted point of reference for opinions and insight on the global economy and retail sector stock evaluation, Mr. Sozzi is a frequent on air contributor to CNBC, Fox Business Network, and Bloomberg, and is cited regularly by online/print publications that include Forbes, Bloomberg, The Wall Street Journal, Thestreet.com, CBS Marketwatch, Reuters, Seekingalpha, Associated Press, Crain’s NY Business, Fortune, Barron’s, AOL Finance, and the Financial Times. In 2009, Mr. Sozzi became recognized by Starmine as a top-ranked equity research analyst for stocks under coverage in such categories as EPS Estimate Accuracy and Industry Excess Return. David Silver is a Research Analyst for Wall Street Strategies. He is a graduate of Tulane University’s A.B. Freeman School of Business where he received his Bachelor of Science in Management with a dual degree in Finance and Accounting. David actively covers companies in the Transports, Autos, and Beverage sectors. He is routinely invited to appear on business oriented television and radio shows including CNBC, Fox News, Fox Business News, the Business News Network of Canada, WCBS Radio, and the Wall Street Journal Radio. In addition, David has been quoted in major business publications such as the Wall Street Journal, Forbes, Marketwatch, CNN Money, and Autoweek. David Urani is a research analyst with concentrations on the homebuilding, staffing, medical devices, and logistical services industries. Along with providing institutional clients with up-to-date reports of individual stocks within his industry coverage, David assists the rest of the Wall Street Strategies research desk with timely analysis of vital economic data. A graduate of the A.B. Freeman School of Business at Tulane University, David earned a Bachelor of Science in Management while majoring in finance. With prior training experience running small businesses, he has an eye for key fundamentals that keep Companies running efficiently. David’s insight has been featured in several outside sources, including the Fox Business Network, MarketWatch, and SeekingAlpha. Carlos Guillen is an Equity Research Analyst providing coverage of the technology sector for Wall Street Strategies, Inc. Mr. Guillen has had experience working in both the sell side and the buy side. Prior to working as an analyst, he was a Design Engineer for Lambda Electronics. Mr. Guillen holds an M.B.A. from NYU’s Stern School of Business, and he has a B.S. in Electrical Engineering from Manhattan College. Conley Tuner is a Research Analyst with Wall Street Strategies Inc. He is a frequent contributor to a number of media outlets including MarketWatch, Bloomberg, BBC news and Xinhua news. Conley holds a Masters in Business Administration and a Masters in International Affairs from the George Washington University. Jennifer N. Coombs is an Equity Research Analyst at Wall Street Strategies. She previously worked on the buy side as an Associate Equity Research Analyst covering the transportation subsector of the industrials sector at AIG SunAmerica Asset Management Corporation. Jennifer also covered Real Estate Investment Trusts (REITs) and has done broader research for the industrials, financials and consumer sectors. Prior to joining their research department, Jennifer worked as a Trading Assistant for SunAmerica’s index funds. She also worked briefly in the client portfolio management department at Dwight Asset Management Company – a fixed income subsidiary of Goldman Sachs. Jennifer graduated with distinction from Clarkson University where she earned a B.S. in Financial Information Analysis and Political Science, with minors in Economics and Law. Jennifer specialized in international markets, and briefly studied East Asian Economics at Sungkyunkwan University in Seoul, South Korea. Jennifer is currently a member of the New York Society of Security Analysts (NYSSA).

By Carlos Guillen

This trading week started off on a rather negative note and has progressed into the worst week of losses in equity markets since the week of November 28, 2011, as investors continued to focus on China's slowing growth and its effect on emerging economies.

The losses posted this week have accelerated, as reflected by the Dow Jones Industrial Average, which is currently down over 200 points. U.S. stock are not alone, however, as equity markets around the world are taking a hit today, as weak Chinese data from yesterday created volatility in emerging-market stocks and currencies that has continued today and is pushing investors to flee for safer assets. As it stands, assets seen as safe havens continued to gain value. Gold futures are extending yesterday's rally to a two-month high. Treasury prices also gained further, with the 10-year Treasury note reaching a seven week high.

As we saw yesterday, Chinese manufacturing data showed the sector unexpectedly contracted in January. But the negative sentiment that this data sparked has not dwindled, and in fact it has turned into a fire as investors are now seeing headwinds for emerging markets. In particular, one worry is that many economies have begun to curtail quantitative easing actions, which now may have adverse consequences for their respective currencies.

All this instability comes at a time when stocks appear rather rich in value, and this gives more credence to the notion that a correction is imminent. Unfortunately, it is likely that we may see further stock declines as investors take some profits due to the heightened uncertainty.

Currency Chaos

David Urani

China spooked the emerging market community yesterday with its negative manufacturing PMI reading, as it's obviously a big consumer of world raw materials and a key trading partner for emerging markets and the world economy at large. Certainly it's worth worrying about, although perhaps too early to start panicking given that it was just one month of slowdown while there's also the aspect of the upcoming Chinese New Year holiday that does tend to skew economic data this time of year.

Well, the emerging market investors are taking it a step further today, specifically currency traders. It may have been sparked by Argentina, whose central bank yesterday decided they would not allocate money to support their peso. Consequentially, the peso tanked by more than 15% against the dollar; Argentina took emergency measures today to allow for dollar purchases again, which had been banned since 2012, to regain stability in the currency market.


And now emerging market currencies are being put into the spotlight and the Fed is rearing its ugly head once again. The Fed is expected to continue winding down its QE program this year and that's got the currency traders sweating a little bit more today about an impending imbalance in the global currency markets that cheapens all the emerging markets' currencies against the benchmark dollar. It's all very speculative, really, but it's taking its toll at least for today.

Alongside the Argentinean peso, we have the Turkish lira down almost 7% against the dollar this month and diving to new record lows:


The South African rand fell approximately 1.1% today and is at its lowest point versus the dollar since 2008:


The Russian ruble hit a new record low against the euro, and the weakest value against the dollar in five years:


Of course, the worries about a Fed-induced global currency imbalance carry a whiff of conspiracy/doomsday mentality, and in reality it may just be part of the broader market selloff. Indeed, there is worry that world trade is in the midst of a slowdown and these are times when the naysayers start to come out of the woodwork.

The fact remains that in the grand scheme the market is still just barely off of the record highs and in fact you would be prudent to at least bag one or two profits. But it's far too early to begin to panic.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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