FED is holding back and the stock market moves on
As a indicated in the last market letter there was only a matter of time until the bull is starting to show its face again still if Asia and foremost China had a weak week.
Global Stockmarket
This part will consider regions as the US, Europe, the Nordic region, Eastern Europe, South America and Asia.
Europe is one of my strongest cards for 2007 and the beginning has been reasonable good considering the risk. Raw materials and foremost oil have not been a fun reading for the investors that been taking positions towards raw material, still there are shortage of raw materials and that would theoretical holding up the prices for 2007.
Eastern Europe seems day by day to be a winner for 2007, countries as Romania and Bulgaria are examples of countries that expecting to have a strong 2007 and will as well get help by being close to moving in to the European Union.
Currency
This part will foremost consider an overview of the trends for the dollar against the Euro and emerging market currencies. I have during 2006 been arguing to go short dollar and I think at this point that 2007 will be another year when it is possible to make money going short the dollar.
There seems that the FED is holding back and will not cut the interest as soon as expected. That will probably not help the dollar for very long and especially not considering emerging market currencies. Towards Eastern European the dollar have after the last weeks bounce back coming of again and is still in a weak.
This entry was posted
on Monday, January 15th, 2007 at 5:59 pm and is filed under Weekly Market Update.
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