Is market is due for initial rebound?

VALUEPICK · 1 Is market is due for initial rebound? Fri Feb 26, 2016 5:02 pm

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We are seeing continuous volatility in stocks globally after sell-off in January 2016. However, we can also see some strength in some global markets and some stocks are having strong bull markets now. Globally some stocks and sectors have recovered somewhat and consumer staples stocks have great demand at the moment specillay for tasty food stocks which include chicken and egg stocks due to attractive value and outlook. One by one food stocks are joining their food bull market now. Current food bull market in global stocks markets could become one of the longest one in the history. We will see it when they break their 52 weeks high and all time high. Already few broke their all time high.

Even in Sri-Lankan market we can see some sort of support for some stocks after sell-off. We cannot expect sudden rise in markets and instead first we can expect stock oriented uptrend in the coming weeks and months.

Value investors can do their own study in market like this. They should be able to identify some great businesses at a great discount.

In the short run market can have volatility. In the long run only earnings will drive stock prices.

stockback · 2 Re: Is market is due for initial rebound? Fri Feb 26, 2016 9:47 pm

stockback

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Market ready to rebound next week.

I am watching next week. T-Bill and T-Bond auctions.

hopefully T-Bond auction will be suspend if Market request more high rates. T-Bill rates stay same stage thats what my prediction. will see from that point Market will build the confidence.

point · 3 Re: Is market is due for initial rebound? Fri Feb 26, 2016 10:03 pm

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But i feel no rush on government side. looks like they have 5 years plan. Lets see.

VALUEPICK · 4 Re: Is market is due for initial rebound? Sat Feb 27, 2016 1:39 am

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Thank you for ideas.

Almost all countries have some sort of economic crisis and still bull markets can appear at different times. There are short terms and long term cycles for markets. During months of November and December 2015 some analysts tried to put Dubai market into bear market territory and now it is closer to bull territory. UAE one month return is around 15%. Iceland one month returns around 2% and one year return is around 25%.

Some worst performing frontier markets or emerging markets in 2015 such as Egypt, Morocco, Lebanon, Namibia, Nigeria, Slovenia,Qatar,Saudi-Arabia,Kenya,Russia, Malaysia, Indonesia, Singapore, Thailand, Mongolia, and Philippines have reported around 1% to 15% one monthly gain during last month. We can see some investor interest towards under researched frontier markets despite some short term issues. Attractive valuations should attract some investors now. Some listed food stocks are outperforming their market as well now. Some frontier markets are benefiting from low commodity prices and some are not benefiting from it.

Global markets should consolidate in March having less volatility than previous two months. Hopefully we can see initial active months towards April and May 2016. These are the months to watch to identify some major trends.

jayathu · 5 Re: Is market is due for initial rebound? Sat Feb 27, 2016 6:42 am

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http://nation.lk/online/2016/02/27/budget-deficit-heading-for-a-blowout.html

VALUEPICK · 6 Re: Is market is due for initial rebound? Sun Feb 28, 2016 7:30 am

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Thank you Jayathu for your link.

worthiness · 7 Re: Is market is due for initial rebound? Sun Feb 28, 2016 9:28 am

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Among number of striking factors, it is well shown in the past how global investors sentiments affected Asian region. With a sign of slowly reversing such impacts together with domestic expectations it is anticipated to revive our stock market but in slow phase by end of coming quarter.

VALUEPICK · 8 Re: Is market is due for initial rebound? Sat Apr 16, 2016 7:26 am

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After brutal sell-Off, we can see some consolidation in global stock markets including Sri-Lankan market while having minor volatility time to time. We should see some volatility in commodity market and currency market next. Stock markets create surprises.