Kevin Scully, the executive chairman of NRA Capital, made the posting below at his blog yesterday. Visit www.nracapital.com
In mid July and as late as recent as the InvestFair in August 2010, I went on record to say that I was bullish on stocks and had targets before the end of 2010 for the STI Index at between 3300 and 3500 subject to corporate earnings momentum being unchanged. The latter has remained intact which meant that my targets for the STI should be intact too.
My analysts received many comments from market players as to why "the resident bear" (my market nick name) was so positive....I also encountered many skeptical investors along the way.
Remember my key argument was that stocks were very cheap compared to their historical levels across the world, interest rates would remain low because of a falutering US recovery and there would be no deflation given the steep yield curve.
After the gains of the last few weeks, my target for the STI Index is now looking very achievable. Infact, I received many telephone calls and sms' last week from investors and friends asking me what stocks they should be buying.
I told them.....to look at my Stock Picks list.....there has been no change in my recommendations nor to members in the list yet.....although I may be making some adjustments during and after the Q3-2010 reporting season either from strong price gains (such as Hisaka) or to review laggards in particular the property and construction plays in my portfolio.
The current rally still seems to have some legs based on the technical indicators but I would prefer to hear the views of chartists on this.
VIX index remains subdued at the low 20s level....one of the key factors for investors to return to equities
What stocks should you be looking at now ?
Recent stories:
KEVIN SAYS: 'Hisaka and ASTI expected to deliver strong full-year numbers'
FUXING: China’s No.2 zipper firm 2Q net nearly triples, 2010 looking good
