Berneke saves the day!
Urgg...As I expected Helicopter Ben pays scant regard to the inflation topics and saves the stock market. I should have known that to protect his reputation (he will not want to be the first Fed on watch with a crash in the market), and being handpicked by Bush, he will resort to more drastic measures.
Sigh... I was more or less out of the market, so in the morning I put some orders for the banks. They are quite beaten up, and the Fed move will benefit the emerging markets better. The banks will be definetly be a good short term play.
I learnt my lesson prevously, and entered the blue chips this time. (Small cap do not impact my bottom line)
Went in UOB 21, exit 21.3. (yest close 20.5, down 0.3)
Went in DBS 19.7 exit 19.9. (yest close 19.3, down 0.2)
New lesson learnt, 1) do not overpay (~2% premium). 2) UOB with share buy back is a better play. 3) have to lift my credit limit in account.
I will wait their further bad news. Lehmann Brothers results were good, posting a slight decline even after writing down 700mio in subprime mortages.
The other big investment bankers will be reporting soon. Somehow I think Goldman Sachs will show a slightly bigger decline. Beware, DBS is another time bomb, possibly writing off some value in its 3rd quarter earnings.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment