Tuesday, March 25, 2008

Calling the bottom - in pictures

Punk Ziegel in the US last week told us this was a once in a generation opportunity to buy banks. Now in Europe Teun Draaisma and colleagues at Morgan Stanley say its time to purcahase top notch credit. On Tuesday, during early trade in London, not a single Footsie stock languished in negative territory as the FTSE 100 jumped 3 per cent.

How brave is this call? After all, pinpointing a market turning point is supposed to be a mugs game. Consider a few charts from Sempra Metals’ John Kemp:

US equity and bond markets

Yield spread - corporate AAA over 10 year treasuries

Yield spread - 10yr treasuries over Fed funds

1yr Treasury yield

VIX index

US$ trade weighted

No comments:

Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.