Ignore This @ Your Own Risk!
August 17th, 2007 NW Teong
My bold message today is: This is a perfect day to do an investrade buy! Do it now!
What causes the current market turmoil? Yes, sub-prime loans in US. What causes this sub-prime loans problem? Yes, easy credit by lenders. After years of easy credit, what triggers this tsunami in sub-prime market? Yes, the interest rates. Ah ha, we are finally pointing to the lead actor in the whole saga!
There are lots of articles in US talking about years of easy credit due to severe cuts in interest rates during Alan Greenspan’s era. I am not here to discuss about this. What I would like to share with you is that interest rates have come down rather quickly since the middle of June. This, in addition to other indicators that I monitor, leads me to make my bold call today. Please take a look at the chart below:-
 
As you should know by now (for those who have constantly read my blog), chart of the 10-year treasury is a good proxy of the movement of the interest rates in US! A lower of interest rates will give immediate release of the tense situation in the sub-prime markets. The impact of interest rates are well described in my e-book: The Essence of Stock Investments or my e-seminar of the same title (please feel free to visit: www.master-rider.com)
Please note that I did not say market will be back to bullish tone, on the contrary I think market will still be volatile (actually without volatility, what are you trading for?). All I am saying, this is a perfect timing to make investrade buys. Do not over-look the strength of such kind of rebound, especially on stocks that with great fundamentals. In short, I have all signals to lead me for my decision today! 1) My selected macro indicators say so, 2) fundamental analysis say so (please do your home work), 3) Technical analysis say so
Ha ha, good day!
Please read the disclaimer at the end of my blog. Readers are buying or selling stocks at their own risk!
Entry Filed under: Stocks
3 Comments Add your own
1. NW Teong | August 17th, 2007 at 11:51 am
Please note that for this article I would like to stress the fundamental analysis via my investment valuation model. Using this model I have tracked some stocks at real good buy level. However, I must point out that only about 10% of the stocks out of my total coverage that prompt a buy signal. Another 30% of stocks are 90% near my buy signals. and another 40% of stocks are 80% near my buy levels.
Hence, I am not going in the market to buy all stocks in my coverage, rather I buy selectively based on what my valuation model tells me!
2. chee chong | August 19th, 2007 at 12:30 pm
NW, you’re spot-on again…
heed your advise and bought some …. thanks!
3. NW Teong | August 20th, 2007 at 11:03 am
Hi Chee Chong,
Well done! Please remember to do your home work and lock in your profits as and when you see fit! Cheers!
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