Bonds appear to have topped and so do utilities and other interest rate sensitives.
Looks like the market is about to start sniffing out higher interest rates and at some point, this is going to knock the wider indices out for a great downmove.
For now the IT trend remains clearly up so it is a question of timing.
One pillar of the stock market knocked out
Started by
Tor
, Jan 13 2007 09:21 AM
2 replies to this topic
#1
Tor
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Posted 13 January 2007 - 09:21 AM
Observer
The future is 90% present and 10% vision.
The future is 90% present and 10% vision.
#2
dcengr
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Posted 13 January 2007 - 10:54 AM
Or money comes out of bonds and into stocks?
Qui custodiet ipsos custodes?
#3
Tor
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Posted 13 January 2007 - 01:59 PM
Maybe, but I personally dont think so. Cash should be favoured over bonds and equities become more dependent on earnings growth, which I personally think will abate from here as they are at the top end of their range and this should lead to increased differentiation between markets this year.
There should be a really good shakeout this year too.
Good trading however you decide.
Observer
The future is 90% present and 10% vision.
The future is 90% present and 10% vision.
