Wednesday 18 March 2015

Stock Mkt Template & Investment Clock

Seek to know the truth n tell the truth always.
Bcos IF u don't, mr mkr will take all of them to the cleaner.
It's that efficient machine, people fear most.

The core of the stock mkt template as i am told is,
2 TOP lines,
i.  Economic #s
ii. FED policy tricks

move 2 bottom lines of stocks,
2 BOTTOM lines,
i.  Profit growth, provides impetus to bull run.
ii. Financial or cash flow problem, leading to crash mkt.

Good to have deep understanding n working of investment clock vs the economy. The economic #s will prompt FED to juggle with those few tricks that they have.
Economy improves, job mkt becomes vibrant so interest rate has to go up.
When this happens, investment clock begins to tick to asset class of least resistance. A financial force is set into motion n causes many high power people in the mkt to busily readjust n re-position their holdings among the asset classes to an equilibrium level for risk mgmt as well as wealth creation.

Mar 18th Wed 2pm. NYT
Stocks surged immediately after the Fed's latest statement was released Wednesday afternoon at 2 pm. The Dow went from about a 100-point loss to a nearly 200-point gain in a matter of minutes.
The read out suggested Fed is going to take a slow and steady approach to rate hikes. That should calm down investors who had been worrying the Fed would boost rates, or tighten, too quickly.

Yellen had also said she believes the meager inflation is "transitory," with oil and gasoline prices expected to rise this year and the dollar likely to appreciate more slowly in coming months. WTI Oil price surged 3-4% up instantaneously.

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