Tuesday, February 24, 2009

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The Market today

Since this would be my first blog i would try my best to maintain the blogging decorum by writing the "first thought coming to mind" a rule plucked from Huffingtonpost guide to blogging book, I still don't understand why you need a book for that if you are going to write the first thing coming to your mind. Past week was full of excitement between Robert Gibbs and Rick Santelli with discussions going passionate about how each of them dedicated their country better than the other. However i find a little weight in the point put forward by Mr. Santelli who is a qualified reporter but not a economist. The blur in their information war was cleared by Krugman and Roubini christened as Dr. Doom, when they participated on George Stephanopolous show here is their round table discussion :  

          

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Both of them make a clear disregard to the cable business channels for inciting the housing boom in the first place with special mention of Mr. Kudlow from CNBC and followed with support on the Nationalization of Banks issue. Nouriel and Krugman both highlight that nationalization is not a permanent solution, however following Swedish model is highly recommended where the Swedish govt took over and cleaned the dirty assets and released the banks again in public domain , and I agree with them, clean up the banks and return completely detoxified banks to American people. The biggest opposition I think is from the American business "experts" who are freaked by the nationalization idea especially some Republican politicians who consider this as a socialistic or pseudo-socialistic measure, however what  they don't understand that such measure if not taken there would be a complete disaster, which would result in non existence of great banks like Citibank and Bank of America in the first place, so choose wisely. 

Also, in the past week the Gold prices have risen due to huge uncertainity floating around in the market and i think its good opportunity for investors to take bull run on the precious metals, that is great place to make money and please make some !! , another sector which i am going to watch is the healthcare/biotech/pharma sector somehow i feel this sector is going to play major role during the turnaround of the economy also, the processed food industry sector ranging from canned food to the fast food industry these are great businesses because no one is going to stop eating no one is going to stop taking their meds hence its great time to increase the share holdings of these sectors, i would bet a big on Roche Novartis J&J etc.. in food sector Campbell,Kraft(remember it was replacement for AIG in  Dow Jones industrial avg) MacDonald's etc.... keep an eye on companies that produces things which are highly essential for survival of mankind and these are the ones. 

With President Obama kick starting a recession revival process of building bridges and road and rail roads, i would heavily be looking towards civil engineering firms, CAT especially and try to bet on the futures options on it. I was reading a article once on a train, that the railroads which made billions for Chicago residents, and now the residents are ready to give back, and that my friends is great resilience seen in the rail road container segment, I agree with many experts in Obama administration who forsee rail road a as future viable options in transportation no wonder Mr. Buffet grabbed a pie into it. And finally to satisfy the insecurities, huge bets are taking place in the insurance sector, and to my surprise they are minting some money out of it i would definitely choose right kind of insurance sector to go and buy futures because insecurity is going to wane in future making the options like hotcakes. 

Overall think like a typical recession suffered homo erectus what does he need even in dire straits for his survival.... food,water,medicine,clothes....  and you'll get the answer in what domains or industry sectors you should invest your money in. 

Have a nice day folks !!!!

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