Yet another stockbroker

This week there where some indications that the bounce the resent weeks are over. I predicted that this was just a bounce and that the uptrend was intact but mayby expected the market to be moving sidewards before moving up again, this seems not be the case but it is a bit early to tell.

The housing market is still something to keep in focus and though the FED increased the interest to 5,25% as expected the FED was a bit softer in its predictions regarding the inflation which might be a step closer to a cut in interest though it is not something that is close in time at this point. A movement in the interest or not, the housing market is still one of the greatest threats for the US economy at this stage.

Some analyst expects that the Fed cut interest as soon as May or June but that is probably to early. The strong job growth and the low unemployment rate makes it, in my opinion, to early to start cutting interest and risk the inflation to start moving up even further.

As pointed out the housing market is a concern and the strength in the housing market in the beginning of 2007 seems to been temporary. Stats the next two months regarding the housing market is something to follow closely the get an good view where it is going from here and what consequences it have for the US economy.

The Inflation in the US is still over the goal of 2% and the core inflation which is the one the FED looks into the most was up to 2,7% in February and it is important that it is not moving up any further.

So the never ending story if the market is having a hard landing or a soft landing will probably keeps on going for some time.

Global Stockmarket

This part will consider regions as the US, Europe, the Nordic region, Eastern Europe, South America and Asia. A strong global growth have been moving almost all markets to good result for 2006 and below is quick overview of areas for the 2007.

The emerging market was as can be expected in top when the market this week moved up. India that been under pressure in the start of 2007 had a good week and might be hitting it lows for a while and the long up trend seems at this stage to be intact though the fundamentals makes the region looks a bit overvalued. Behind Asia and Latin America Eastern Europe moved up strong and the Balkan region have been amazingly strong in the beginning of 2007 and the Balkan region seems to be one of the strongest cards for this year.

The energy sector starting to looks interesting and it looks that the sector has possibilities to shortly make a new all times high. The valuation of the sector is low though the expectations to make strong profits in the next couple of years.

As mentioned Oil moving up strong and the Copper is just keep on moving upwards mainly because china is back and buying and pushing the prices up.

Currency

The FED helps the dollar to keep on coming off and the speculations of an cut in interest have kept on the pressure on the dollar and the downtrend are intact and as soon as the FED clearly states that an cut will be made not to far away the dollar will hit new lows.

This entry was posted on Monday, March 26th, 2007 at 10:24 pm and is filed under Weekly Market Update. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.