By David Urban
Traders returned from vacation this week and reminisced about the Labor Day vacation. It appears as though everyone is waiting to read Tuesday's FOMC statement.
See the news articles below for the most interesting part of the week, which should tell you that we are near a top in bond markets globally.
The State Bank of India raised its repo rate by 25 basis points to 6% and reverse repo rate 50 basis points to 5%.
<a href='www.bloomberg.com/news/2010-09-10/gold-r...;Bangladesh buy 10 tonnes of IMF Gold. Total Gold sales through July is 88.3 tonnes. </a>
In January, the IMF stated its intention to sell the remaining 191.3 tonnes of Gold on its balance sheet. This would mean that as of the end of July, the IMF was selling approximately 18 tonnes of Gold per month into the market. This would put us on course to complete the Gold sales in January of next year.
<a href='www.chinapost.com.tw/business/asia/asia-...;China issued 50 year bonds this week.</a>
<a href='www.xe.com/news/2010/09/17/1402677.htm?c...;t='>Thailand is considering a 50 year bond issue for later this year/early 2011.</a>
As the quarter draws to a close I will start talking about sectors and themes which I believe will outperform as 2010 draws to a close.
Just because I am down on banking and housing stocks does not mean I am down on the financial sector. There are a number of attractive stocks and areas which should outperform in the coming months.
Monday – Japan Leading Economic Indicators
Tuesday – FOMC Meeting,
Wednesday – Bank of England minutes released
Thursday – US Leading Economic Indicators
Friday – US Durable Goods
Communications are intended solely for informational purposes. Statements made should not be construed as an endorsement, either expressed or implied. This article and the author is not responsible for typographic errors or other inaccuracies in the content. This article may not be reproduced without credit or permission from the author. We believe the information contained herein to be accurate and reliable. However, errors may occasionally occur. Therefore, all information and materials are provided “AS IS” without any warranty of any kind. Past results are not indicative of future results.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN THE STOCK, BOND, AND DERIVATIVE MARKETS. WHEN CONSIDERING ANY TYPE OF INVESTMENT, INCLUDING HEDGE FUNDS, YOU SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS: OFTEN ENGAGE IN LEVERAGING AND OTHER SPECULATIVE INVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS, CAN BE ILLIQUID, ARE NOT REQUIRED TO PROVIDE PERIODIC PRICING OR VALUATION INFORMATION TO INVESTORS, MAY INVOLVE COMPLEX TAX STRUCTURES AND DELAYS IN DISTRIBUTING IMPORTANT TAX INFORMATION, ARE NOT SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.
Before making any type of investment, one should consult with an investment professional to consider whether the investment is appropriate for the individuals risk profile. This is not intended to be investment advice or a solicitation to purchase any of the securities listed here. I will not be held liable or responsible for any losses or damages, monetary or otherwise that result from the content of this article.
Disclosure: Long gold bullion