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Bottom has reached !

Obama gave an exceptional acceptance speech which would make even skeptics vote for him. Democratic party made an excellent choice as their presidential candidate and I fully support Obama for President. America needs change and who is better than Obama ?

Now coming to main topic - I have been calling market bottom for some weeks. With today's GDP report, I can confidently say that market have reached bottom few weeks back and it is on its way towards 12500 by end of year. Most promising part of today's market move was that financials have come back in a big way. I was glad that my call on mortgage insurers was so on the mark with 4 of my recommendations up by 20-50% in last few days. Since these stocks are still down by 80% from their peaks, I would recommend staying invested in these stocks or making positions when they come down little-bit (check out my recommended entry points in previous post).

I see scenario playing out exactly like 1992. Even though I was not in USA, from my reading, some of the similarities are:

  • Bush was president
  • Housing and financials were in trouble
  • Economy was in recession
  • Jobless rate was high
  • Young democratic candidate was inspiring America
Once Clinton was in office, we all know how markets did in 1990's. Hope Obama would do same for markets in next 8 years

Good night and good luck !

/Shyam

Comments

Anonymous said…
good luck with with that shy

i sincerly like you but i caution readers of this blog that this is dead wrong (spy p/e 26 and that is bottom LMFAO)

if you want i will illuminate many reasons why but if you overlook my previous comments you will see i have been dead on

deflation is a nasty girl shy

dont become a cramer

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