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Another sign of a short-term bottom
I recently wrote that gold and gold stocks could be setting up for a short-term trading bottom (see A bottom for gold and gold stocks?) and followed up with a post that the market may be seeing a short-term reversal at these levels (see The "Merde" rally?). Now comes another sign that a trade-able bottom in risky assets may be near.
 While there is still a high degree of headline risk, consensus sentiment is becoming overly bearish, which is contrarian bullish (see Mark Hulbert's article Major correction unlikely), and the stock market is now overpricing tail-risk in Europe. Notwithstanding the problems posed by Greece, the message from the bond markets of France, Italy and Spain is one of relative calm. Who would you rather believe, the stock market or bond market? Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest. None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions. Past performance is not indicative of future results. Either Qwest or Mr. Hui may hold or control long or short positions in the securities or instruments mentioned.   |
