Thean,
For those of us investing in semis, we are truly in the sweet spot in Q3. No doubt about it: semi's, telecom semi's, and oil and to some degree BIOTECH we're the island of double-digit prosperity in Q3. Not much else was.
In Q4, we've even got to be as or more selective in the choice of segments to distill the best gains.
I believe that drugs are in that group. I own PFE, and am looking to add others selectively through the earnings season.
For next week, the scenerio is as follows:
1) NO raise, no bias change
2) No raise, bias change to tighten
3) Raise, no bias change
4) Raise, bias change to tighten
1 will make stocks move up, 2 keeps the fear alive for more rate increases, 3 and 4 are very destructive to equity and bond prices in the ST, but 3 provides the glimmer of hope that they're done for a while.
Pandora lets Hope out of the box on number 4. It's down down down if that happens...
Steve |
