Recession in the USA started in Dec2007 (Ok, owe up those who blindly believed what those authorities of influence said when they denied that USA was in a recession in the earlier part of the year). You don’t hear much good news nowadays. We are not out of this mess yet. In fact, I think we are only about 40% in progress. 60% more pain to experience before we can see the sunshine. Below are some of the pointers that I have consolidated from various print media and websites, which may help us identify the period of the much awaited turnaround in market sentiment and business conditions.
1) Home prices in USA stop falling.
2) Foreclosure rate return back to normal level.
3) Commercial banks start to lend again.
4) Inventory falls back to a reasonable level. Currently there are too much goods but too little demand.
5) Earnings growth visibility return for companies. At the moment, earnings are expected to contract for FY2009.
6) Government bond yield increase and corporate bond yield decrease. This is a sign that investors’ risk appetite has returned.
7) Companies stop writing-off assets and stop taking on impairment charges.
8) Inter-bank interest rate goes back to normal level.
Have a great weekend.
Subscribe to:
Post Comments (Atom)
1 comment:
As Buffett says, if you wait for the robins, spring will be over. Buy stocks now, instead of waiting for the chirping sounds cause then stocks will be more expensive.
Post a Comment