Tuesday 23 August 2011

Light at the end of the tunnel


It is dark when you are in the tunnel. But when you see light, would it be a

·         Light at the end of a tunnel or a

·         Runaway train?

The focus or turning point this year would be Jackson Hole.

Speculations and/or hopes for the Calvary had begun.

Briefly, if the Feds

·         Deliver what the market expects, this would be the turning point and markets will head north

·         Fail to deliver what the markets expects, the market will dive down another 15-20%

With this in light, which profile do you fall in

·         Conservative,

·         Moderate or

·         Aggressive.

Points to take note: Pre Jackson Hole

·         Be prepared for Jackson Hole,

·         Have a strategy.

·         Execute your strategy

·         Stick to your strategy

The other data on Aug 26th besides Ben Bernanke speech at 830pm will be the GDP data. While both are equally important, Jackson Hole will have more weightage.

I stress again,

The focus or turning point this year WILL be Jackson Hole.

2 comments:

  1. It will only delay the inevitable if US govt still cannot settle policies to tackle root causes.

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  2. True! I won't disagree.

    Again, I stress. Markets had been badly hit.

    In my opinion, the Fed Chairman should have sufficient data to read the situation. Unlike in previous situations where investors were hoping for QE3, it was too early for BB to analyze and react.

    Jackson Hole is a do or die. If he fails to meet the market expectation, the market will nose dive. Else, the markets will reverse. However, the situation in Europe is a separate entity by itself. Hence, the primary focus for all investors, fund managers is on Jackson Hole.

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