From a macro point of view, global speculators/investors are favoring safe haven assets than higher yield assets. The higher risk assets being commodity currencies (Aussie, Kiwi and the Loonie) and Equities.
· Equities follow the sentiment in Europe
· while precious metal commodities like Gold and Silver (being a safe haven for uncertainties) rose.
Global equity markets are tending with a Southward biased. The US market closed lower with weakness in tech stocks while Energy provided strong gains. Asian markets are lower (12:40 pm Singapore time) with sentiments focusing on US economic outlook and the Euro zone debt concerns.
Is it a good time to buy, average or go bargain hunting?
PE, PB ratios, valuations are very attractive. There’s no right or wrong answer. Only time will tell. However, consider the following before you embark on your next investment strategy
· What’s the current global sentiment? Mixed, good or weak
· Are global investors seeking safe haven or taking more risks? Carry trades
· What’s the volatility index? Risk?
· Is gold and silver going up? Safe haven or risk appetite?
· Where are currencies like Aussie, Kiwi, Loonie trending? Indication to Higher or lower risk
· When is the next important economic data from the world’s largest economy (US, China)?
The above is not an exhaust list of questions I ask myself. It is actually the Inter market analysis one SHOULD consider before making your investment strategy. If you’re not investment savvy, please contact your investment savvy financial consultant.
As I do not see any optimism or favorable attempts to buy, I would constantly monitor global news’ fundamentals, technical, global sentiments. Stay tuned to more updated news at this blog!
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