Dow up 140+ points, NASDAQ gets some releife too. Nothing much to write about in today's market. Sokme sanity returned with select reports indicating its not a recssion after all! This meant financial stocks got some reprive; but that didnt even remotely compensate for what has happenned over the past 2 months!
Now, get ready for earnings season. A lot of reports expected from behemoth financial firms. Bernanke speaking tomorrow - just hope he sends some clear soothing signals! The Fed is expected to meet on Jan 15...and its a question of 0.25 Vs 0.50 in terms of rate cut. I bet its 0.25, since oil prices and inflation are refusing to budge.
Back to picks for this tough year...apart from the ones mentioned earlier:
- PFE (Pfizer). Pharma's good in this down turn, P/E of 10 looks very attractive
- BMY (Briston Myers Squib). Pharma again, but at a higher P/E. Not as attractive as PFE though
- BUD (Anheuser Bush, of Budlight fame). Drink your way through the recession :-)
Some risky medium-term shorts: GG (Goldcorp), XOM (Exxon). I am still long on low-risk bonds, mainly of the longer tenure.
PS: And interestingly, E Trade management did wake up with their announcement of the USD 3 bn MBS sale and closing down of their institutioinal sales division!
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