First minute – Let us go through the indices
a) The country indices are beautiful for the month of July. I’d mentioned about Russia during my last 2 updates and in July, they rose 12.2%. Emerging markets did well and rose 8.3% and Asia Ex-Japan rose 5.7%. The surprising part is that US rose 6.9%.
b) As for the YTD indices, it is interesting to see how poorly Japan fared at -8.1%. Their 2010 P/E ratio in January is around 22 and today, it had dropped to 18. Based on historical PE, this looks interesting to warrant a closer look into the country fundamentals.
c) For the whole of 2010, emerging markets and Asia actually rose very little of less than 2%. With all the volatility and heart-stopping moments, they are considered poor investments.
d) Though Indices looks great the forward indicators looks worrying. Baltic Dry continue to drop in July to 1967 and US Consumer Sentiment at dropped 10.8% to a very low point of 67.8. Job markets in US continue to be weak.
e) There are not much movement to Gold and Oil prices and Vix Index had dropped to 24.13. Things looks stable for the moment but am very unsure which way it wants to go. Read more...July is a month of relief as we see a reprive of the market indices after the downturn in May and June. For my clients who had switched in during July, you had made small gains with the 10 to 20% reallocation back into equities during the month. Despites saying these, the outlook ahead are still very very uncertain. Pls go through the next 3 minutes with me.
First minute – Let us go through the indices
a) The country indices are beautiful for the month of July. I’d mentioned about Russia during my last 2 updates and in July, they rose 12.2%. Emerging markets did well and rose 8.3% and Asia Ex-Japan rose 5.7%. The surprising part is that US rose 6.9%.
b) As for the YTD indices, it is interesting to see how poorly Japan fared at -8.1%. Their 2010 P/E ratio in January is around 22 and today, it had dropped to 18. Based on historical PE, this looks interesting to warrant a closer look into the country fundamentals.
c) For the whole of 2010, emerging markets and Asia actually rose very little of less than 2%. With all the volatility and heart-stopping moments, they are considered poor investments.
d) Though Indices looks great the forward indicators looks worrying. Baltic Dry continue to drop in July to 1967 and US Consumer Sentiment at dropped 10.8% to a very low point of 67.8. Job markets in US continue to be weak.
e) There are not much movement to Gold and Oil prices and Vix Index had dropped to 24.13. Things looks stable for the moment but am very unsure which way it wants to go. Read more...
First minute – Let us go through the indices
a) The country indices are beautiful for the month of July. I’d mentioned about Russia during my last 2 updates and in July, they rose 12.2%. Emerging markets did well and rose 8.3% and Asia Ex-Japan rose 5.7%. The surprising part is that US rose 6.9%.
b) As for the YTD indices, it is interesting to see how poorly Japan fared at -8.1%. Their 2010 P/E ratio in January is around 22 and today, it had dropped to 18. Based on historical PE, this looks interesting to warrant a closer look into the country fundamentals.
c) For the whole of 2010, emerging markets and Asia actually rose very little of less than 2%. With all the volatility and heart-stopping moments, they are considered poor investments.
d) Though Indices looks great the forward indicators looks worrying. Baltic Dry continue to drop in July to 1967 and US Consumer Sentiment at dropped 10.8% to a very low point of 67.8. Job markets in US continue to be weak.
e) There are not much movement to Gold and Oil prices and Vix Index had dropped to 24.13. Things looks stable for the moment but am very unsure which way it wants to go. Read more...
