<--OT-->Merril Lynch's view of the world markets.
Good morning Paul:
Good advice indeed from Lynch. He always maintained the view [and still do] that the investor should know the company they are investing
in before they buy the stock and if they deem the fundamentals of the company is strong,now and going forward,then everything else is noise and that includes the market gyrations,news paper headline,analysts'
prognosis,bear market,bull market,and whatever else.Now that is some sound advice!
Here is something from Merril Lynch as to how they view the present
economic situations around the world,thought it might be pertinent.
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[source: Merrill Lynch]
Excerpts.
With the ongoing upheaval in the emerging markets, investors everywhere are nervous. As we saw last week, the turmoil in Russia's economy and the continued crisis in Japan and Asia are shaking up markets around the world.
Here's our perspective on what's happening, and what it means to investors.
Pressures in emerging markets
The devaluation of Russia's currency was not unexpected. Internally, it threatens the country's political and economic reforms. Externally, it raises the risk for investing in emerging markets elsewhere. We would approach any new investment in Russia, Asia and Latin America with caution.
We don't expect China to follow by devaluing the Yuan this year. Of more concern is the Hong Kong government's intervention in its equity markets.
Mexico remains in better shape than other countries in Latin America, all of which will have to contend with slower growth.
In all these regions, we believe the markets are increasingly looking for clear and decisive leadership, and that it must come from key public policy makers.
Minimizing risk, maximizing opportunity
As always, we think investors who hold a long-term perspective and a carefully balanced portfolio can successfully weather the global storm.
The U.S. economy is still healthy. Inflation is negligible and we expect interest rates to go even lower. For the last few months we've been recommending quality U.S. and U.K. bonds, which will clearly benefit from lower interest rates. In the equities market, we'd move away from most cyclicals and toward high-quality consumer goods and utilities that can withstand the coming earnings slowdown.
Despite the short-term volatility, for those with a long-term outlook we see select opportunities in Asia. Depressed stock prices and the high Asian savings rate add up to good long-term value, and when the emerging markets do recover we expect Asia to lead the way.
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gotta go and see i can pick up some scraps here and there.You seen them money center banks,looks like they are on sale as they are all below 52 weeks low. |
