Taking Stock: A Lot of Good News Already Priced Into Stocks
Most capital gain bonds are due for a correction and that makes it more difficult to be a new buyer of stocks, bonds or commodities right now. All you have to do in the equity market is pull up a one-year stock chart on the S&P 500 Index and you’ll see the tremendous capital gain. The bonds Indian market has already priced in strong first-quarter earnings and, if companies don’t announce strong second-quarter visibility, I think share prices will retreat. With the economy so fragile in its recovery, investor sentiment can change on a dime. We saw this last summer when not a single piece of good news could motivate equity investors to be buyers. Then, as if a switch had flipped, sentiment turned and it wasn’t even during an earnings reporting season. Obviously, you can make money just buying bonds in India , the index during these major swings in sentiment. Now we’re at a point where it’s time for a break. Trading volume is low, not all the economic data are pointing to renew