Last Sunday no one would have thought that we are going to see market history in the week. This is only week where DOW moved 400+ points up or down in 4 consecutive days. Even during 2008 crisis, this did not happen. Despite such large moves, week ended with DOW down only by 1.7%. So if you were awake and cut from news, you are good since no one likes (except day-traders and option players) so much volatility. Few more notable things happened last week:
- Apple became new company to claim the title of Most Valuable Company in World. It had that crown for two days and then again lost to Exxon which has this honor since 2005. In coming weeks it would be interesting to see this duel fight out. Let's see who wins - ipad or oil by end of 2011. My prediction is Apple ending year as most valuable company.
- Even though S&P downgraded USA debt, debt markets mostly ignored the downgrade and instead rushed to buy USA debt at record low yields. 10 year treasury yield went down below 2.15% at one time. I think that low for the year and going forward it should start inching towards 3% again. If you want to play in that market, check out TMV at $24
- Fed came to rescue with its promise of keeping record low interest rates for 2 more years. Basically they are giving blank check to invest in risky assets
Now that markets got its correction, it may be good time to start dipping again slowly. Check out some of the ETFs I suggested last week. They are extremely risky but very good for playing on direction of markets!
Back to school is next week so kids are enjoying their last summer weekend ! We saw Jindagi Na Milegi Dobara - a Bollywood movie yesterday. It was good refreshing movie - after a long time.
For all Indians, Happy Independence Day (Aug 15) !
/Shyam
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