Wednesday, February 13, 2008

Has the market reached the bottom?

With warren buffett coming out of hiding and willing to invest money in the stock market, i wonder whether market has reached its bottom. After all he is more seasoned and has lot of wisdom and understanding about the market than me.

It is true that the recent trends in the market shows relative calmness, which i attributed to the government's policies. Some how i still feel the market is going to head down for some more time and i am holding to the bearish view for the entire year.

Wednesday, February 06, 2008

A stock to watch

As listed here, for year 2008, i had considered buying the following stocks: Tata steel (TTM), INP, Visa (when IPO comes out) and AMGN.

Well change of plans - instead of buying INP and AMGN, my attention has shifted to TSM and COH. Coach is something i am interested because of their strong financial results. I believe the company is good - it has consistently produced profit for 8 years - sustained growth, low PE and good growth rate. With recession looming, i suspect there would be a lot of fear in the retail sector stocks. When everyone else is afraid get greedy. TSM is more of a bet that electronics and chip marker giant are going to have stronger growth in the future. I am not going to buy these stocks soon, still waiting to see how the stock market is behaving.

Tuesday, February 05, 2008

The market crash continues

The year 2008 is going from bad to worse. Just today alone i lost about $2K from my investment. I had invested in vhgex starting early 2006 @21.98. today (early 2008) it is at 21.00. In fact the 52 week high and low gives you a picture of the roller coaster. between $20.58 to $27.78. but i am not really worried. Today i decided to invest another $1400 into the fund. I am for the long run...and i sure dont mind the roller coaster ride.

Sunday, February 03, 2008

The fall of interest rates

Although old news, the rate at which Feds are reducing the interest rate has a tell tale sign on the rate of CDs. unfortunately one of my CDs is maturing this month end and i am struggling to find a good enough rate. The CD was for 6 months and it had 5.50% APY. In six months time i cannot find that rate anymore. Things have changed so quickly. Lesson: Next time around, when the rates are higher, i will lock down the money for a longer period of time (at least for two). As for the CD that is maturing, i will put it again for a 6 months CD at what ever rate i get.