Monday, June 20, 2011

Some thoughts for July

The selling seemed random given the prior selling has discounted much for the end of QE2.

Contrary to popular beliefs, I think end of QE2 is actually positive to US which in turn flows down and is positive to Asian nations. Demand is holding and many of Asian companies are having stronger than before growth with yoy growth of some 15 - 30% in those I was keeping tabs on.

Further, I think QE3 is not coming and is unnecessary. QE2 did little in its purpose except for inflation. Fed seems more likely to either stop QE2 or let it run and at the same time selling some of the structured assets it stocked up during the crisis gradually.

Also noted many of portfolio holdings getting hit, many stocks were being sold lower on very thin volumes ...selling steam running out. Shorts beware?

Have been following Pertama/GPG and Portek guys for while, proven to be taken over. A real pity I did not get in for both. Decision to not buy Portek was due to the high support from previous buyers which may result in sharp losses in event the anticipated deal falls through. Pertama is a mistake I should never have made.


Penny Stock Newsletter said...

what will happen to the united states if china india japan and all the countries and all investors the world over shun the dollar. Interest rates would rise and the federal reserve would be forced to buy bonds from the treasury to fund the government and pay interest on all of the governments bills notes and bonds. When the buyers for united states debt obligations disappears the whole system will come crashing down. This is the type of thing that peter shiff has been warning everyone about when the ability of the united states to pay its debts becomes clearly in doubt all the buyers for united states debt securities disappears overnight.

Post a Comment