Two giants both JKH and COMB should calm down first. Their behaviour has become different at different times. Irrespective of irrational of behaviour of these two stocks, some other stocks will shine time to time.
Stocks should go up due to following reasons.
Strong institutional buying both foreign and local (I think new government is still making some plans)
Continuation of capital system globally including China
Due to oversold situation
Anything goes down will go up in stock markets
On fundamentals and great valuations
Lower oil and gold prices
At the moment there are not much other investment opportunities globally
Global governments still want to maintain easy money policy including low interest rate.
Market selloff will follow strong uptrend
Until we see peak in bull market (What happened to Sri-Lanka market during last three years? We never saw broader bull market for all types stocks such as blue chips, small and mid caps etc? Last time some analysts avoided recommending banking and financial stocks due to gold prices. Those who bought some banking and finance stocks had some capital gain and now they having correction. Can we have another opportunity here?
When value investors become active as there are many value stocks in the market
I believe it is time to identity great winners in the market for 2016 and beyond. During period of 12 months to 18 months lot of things can happen. It is better to stay with known angels in the market now. There could be some hidden gems as well.
We listened to so many bad news during last five years globally and we missed some great opportunities. Almost every country irrespective of big or small has some kind of debt. Some have mountain of debt. They can print money or issue bond to repay their debts. World economy is running using credit market. End of credit means end of growth in the world economy under the current financial system. What happened to western world when credit market became freeze? They had to implement bailouts. Right or wrong that decision helped them to recover their economy little bit. Can anybody find 100% solutions to the any economy? Experts and some top players in the global market can predict lot of things. But they don’t materialize in this world as it is.
BTW today people insurance is trading below its IPO price as it came to the market like today. It is time to identify best insurance stocks in the market as well.
It is also time to identify attractive individual stocks separated from the market.