Predicting the Next Market Turning Point
Posted Jun 10, 2008 04:10pm EDT by Andy Kessler in Investing, Recession
Related: leh, aapl, rimm, goog, ^IXIC
Every market has its proxy. During 1997 and 1998, I watched the Asian markets overnight to gauge how Wall Street was going to fare. Later, Amazon.com was my guidepost. These days, amid the mortgage fallout, I use a different proxy: the ABX derivatives index. While it may overstate the subprime bond losses, I stand by it as an overall market indicator. Even with Lehman's news Monday, ABX suggests more trouble ahead. After that passes, though, I think we could see a big rally in tech, which is doing fine, but waiting for investors to finally put the fear of a financial meltdown behind them.
finance.yahoo.com |
