Aha - Foreign Money IS flowing in
Connect these dots:
But dig deeper and you'll see the pattern - foreign money. I've been saying that we would see foreign acquisitions and it's starting.
That makes me very excited. Now I understand why our stocks aren't dropping - foreigners see how cheap many of our companies are.
And this is a great way to recycle dollars just sitting around and eroding. I bet China is spreading dollars around like crazy, albeit under the radar.
I am excited because this points to a bottom.
I had expected another down day and indeed, it was heading that way: at 2pm NASDAQ qas down 1% and the Dow was down 0.5%. Then BOOM a massive buying spree shoves both up 1%. That's huge. I think it's partly the Fed buying as well as other Central banks.
So here's the thing. The Market clearly is feeling negative. It's shrugged off the ridiculous Fed and White House moves. Yet again, LIBOR rates are flat after a Fed rate drop. Yet another day and yet another announcement by a bank or lender that they need another few $ billion to cover losses tied to housing. Yet again we are seeing early signs of negative economic performance: inflation is double expectations and surged the highest in 34 years, and retail sales were flat after excluding gas price hikes - and that's after major sales promotions and other forms of manipulation.
So what is propping up this market?
Partly the December rally.
Partly the continued belief that if it isn't in writing, it isn't real (aka denial).
And - apparently - foreign buying sprees.
I have been holding back because I thought there would be pullback even more. Now, I don't think it matters. Tomorrow we buy in - thi stime I mean it.
- Citibank - money from an oil country
- HSBC - Money from Singapore and another oil country
- JetBlue - Money from Lufthansa
- Genesis - Money from Germany (STM)
But dig deeper and you'll see the pattern - foreign money. I've been saying that we would see foreign acquisitions and it's starting.
That makes me very excited. Now I understand why our stocks aren't dropping - foreigners see how cheap many of our companies are.
And this is a great way to recycle dollars just sitting around and eroding. I bet China is spreading dollars around like crazy, albeit under the radar.
I am excited because this points to a bottom.
I had expected another down day and indeed, it was heading that way: at 2pm NASDAQ qas down 1% and the Dow was down 0.5%. Then BOOM a massive buying spree shoves both up 1%. That's huge. I think it's partly the Fed buying as well as other Central banks.
So here's the thing. The Market clearly is feeling negative. It's shrugged off the ridiculous Fed and White House moves. Yet again, LIBOR rates are flat after a Fed rate drop. Yet another day and yet another announcement by a bank or lender that they need another few $ billion to cover losses tied to housing. Yet again we are seeing early signs of negative economic performance: inflation is double expectations and surged the highest in 34 years, and retail sales were flat after excluding gas price hikes - and that's after major sales promotions and other forms of manipulation.
So what is propping up this market?
Partly the December rally.
Partly the continued belief that if it isn't in writing, it isn't real (aka denial).
And - apparently - foreign buying sprees.
I have been holding back because I thought there would be pullback even more. Now, I don't think it matters. Tomorrow we buy in - thi stime I mean it.
posted by Andrew at
6:50 PM
1 Comments:
There is a reason to be bullish but I think finally it’s all about timing.
Yes ..money will flow in because in non-dollar terms US assets are very cheap.In India they allowed the MF’s to invest abroad and there are new Public offerings from the MF’s every week . Also resident Indian’s can now invest up to $2,00,000 abroad.
China is still holding back its public from investing abroad but in due course they will also fall in line. ..Imagine few million new investors buying US stocks...liverocket portfolio will become skyrocket?:-) *BTW* where is the portfolio?
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