Saturday, January 26, 2013

Notes from Barron's 1/28

Bismillah. I listed some notes from Barron's articles;

Head Wind into Tail Wind, by Alan Abelson
-  equities extended longest winning streak since 2004, S&P is up above 1500
-  new claims for unemployment insurance dropped to 330,000 this week
-  per Floyd Norris, inventories of unsold houses are lowest in decades, and it is now providing a stimulus to the economy
-  Abelson doesn't believe there is any real credibility to a possible war between China and Japan

That Uneasy Feeling, by Kopin Tan
-  9 out of 10 stocks are above their 50-day averages, "a sign the market is becoming overbought in the short-term"
- S&P is trading 14 X projected profits
- stocks make up 35% of assets of US pension funds (long term average ¬44%)--> so there room for further equity buying
- Michael Hartnett, BofA Merrill Lynch chief investment strategist, "Central-bank liquidity has been by far and away the most important driver of asset prices since the great financial crisis."



No comments: