Fly on WallStreet

The first analysis based on ratio analysis left possibly an open question as to the value and likely direction in the medium term……medium term being defined as the next three years. I shall return once again to this baseline analysis when we look at the Gold & Oil markets in relation to the stock market.

Through sector analysis we have identified that the business cycle is most likely positioned within the late expansion, early contraction phase, thus, we would conclude that the stock market contains greater risk than reward at this point, assuming a long directional position.

We move next to China and the Chinese stock market. There have been numerous stock selections from Sir Fly, all carrying a health warning.

This market is if not already in a mania, close to one, this speculative orgy carries great risk, but of course parabolic moves can make leveraged bets into huge winners, thus the temptation will always be present.

For the more risk averse we shall look at the “timing” of the Chinese phenomenon, as, it will directly relate to the undervaluation that I have in mind.

Jog on

grant

# posted by Broker A @ 1:34 PM