Filed under: International Markets, Competitive Strategy, General Electric (GE), China, Getting Started, Diageo plc (DEO), Johnson and Johnson (JNJ), Novartis AG ADS (NVS), Teva Pharm Indus ADR (TEVA), China Life Insurance ADS (LFC), Chasing Value[TM], Israel, Royal Dutch Shell (RDS.A), Telefonica SA (TEF)
It certainly is presumptuous, perhaps even self serving of me to assume the market is going higher in the face of so much uncertainty.
The reason I hold this belief is that so much money is sitting on the sidelines and much of it is getting restless. It’s one thing for those on a fixed income to suffer because the Federal Reserve is keeping interest rates so low, but it is quite another thing to expect $2 trillion dollars of corporate cash to want to live like senior citizens. That cash is a bigger drag on earnings with each passing day.
Then there is the competition between the deflation crowd investing in bonds and the inflation crowd investing in gold. You can be sure that both sides are doing their best to promote their view and one of them is going to be wrong — but it may take a few quarters.
Continue reading Chasing Value: Bonds, Gold, Stocks and Capital Flight
Chasing Value: Bonds, Gold, Stocks and Capital Flight originally appeared on BloggingStocks on Mon, 15 Nov 2010 16:30:00 EST. Please see our terms for use of feeds.
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The market is down and the
Johnson & Johnson (
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