The stock markets are in for a zig and zag mood.
One day up, one day down 1-2%. Very volatile in fact.
One day implosion of bad debt, one day quantative easing.
One day Bernanke, one day Ireland.
One day China, One day Australia.
Why?
Because, most investors invest based on NEWS. The funny thing about NEWS is we can see it from both sides. Analyst will recommend their stocks based on their fancy, sometimes they use PE, sometimes EBITDA and sometimes industry averages, and sometimes on NEWS and THEMES. They can support their analysis whichever way they like, and whichever way it is, it is not wrong.
It is nothing more than intelligent GUESSES.
MyView
How do we improve our GUESSES?
If we look in the mirror as shown in the cartoon, you will see how pretty you are. The real fact is that you are "UGLY". But why does the market prices does not reflect it? It is based on investors perception, majority study the same economics, hence, have the similar perception.
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