Stock Market News
What is it with Alan Greenspan ? My theory is that he really wanted to be a movie star. He just won't go away. Not content with messing up the economy while he was FED Chairman he seems intent on staying firmly in the spotlight.
Look mom, no hands ! Was he neglected as a child? After his previous two attacks on the housing market, he has now come up with something else to keep his name in the papers and on TV - China. Apparently China is heading for a serious correction ! Right, what a genius.
Perhaps if the media stopped talking about him he would just go away. He rarely seems to have anything useful to say, apart from stating the obvious. Is his aim to drive the markets down (is he shorting the market? - nah he wouldn't do that would he?) . Or is it that he just can't stand being anonymous and unimportant? I opt for the latter, by making declarations of dubious worth he is trying to convince himself that he is still a player.
When he made his famous irrational exuberance statment for the first time back in the nineties, the DOW fell for two days then promptly turned around and continued on upwards for the next 3 years! So eventually he was proved right, so was able to say "I told you so" pity about the timing though. This time is no different, he keeps trying to influence the markets, with some short-term success, but this just provides buying opportunities. The markets then recover and continue on their merry way. No doubt he will eventually be right about China, but if his past track record is anything to go by, it looks like Chinese markets are headed higher for the next three years!
I am not alone either David Buick says Greenspan sshould keep his mouth shut and let Bernanke get on with the job.
Some viewer on CNBC says Greenspan is the new C Fred Bergsten ! (A guy who was always wrong)
Joe Kernan blames the media (haha) but Greenspan is playing to the media ! - change your job Joe.
On CNBC this morning Tom Hougaard believes there may be a short-term 8 - 10 week sell-off in the markets, based on profit-taking and a holiday mood but overall the fundamentals look good. I think he is wrong! TH's track record ain't too good either, so I reckon my guess might be just as good as his.
April durable goods are up 0.6% and March durable goods have been revised to 5%
FTSE is down 20, due in part to Greenspan, but I am confident the DOW will recover and head higher and drag the FTSE with it (maybe).
In the UK KCOM may be a takeover target after Hull City Council sold its 30% stake at 68p (not a good price it seems to me) they are 74p at the moment - anothe rone to watch but I will wait to see if it falls back a bit.
Likewise with KMR, good news recently has caused a breakout so I will be watching to buy in on any fallback below 53p (56p at the moment).
SLN is being very strange today, it raced up to 120p then quickly slumped back to 116p. I am still confident and hope to see 125p soon, rumours continue to swirl.
YELL has done the opposite, down then up so I am tempted to get some more.
Cable & Wireless has dismissed takeover speculation as "market mischief-making". A 20% rise in profits boosted the group's shares.
The Finance Director, said: "There is no imminent bid activity as far as we are concerned."
The group reported EBITDA up 20% to £492 million in the year to March 31, £15 million ahead of the most optimistic analysts' forecasts. Pre-tax profits rose from £100 million to £249 million, shares are up nearly5% at the moment.
The profits improvement was achievd on the back of improved performance in its international business and cost-cutting in the UK, where it has been restructuring operations. Some 3,000 jobs will be cut from the UK division, now renamed Europe, Asia and US, over the next five years.
The 7-year chart looks interesting
More upside seems like to me.