Confluence Investment Management
The question of the million: Raises it will last it or the loss of these three days will be the beginning of a correction that will take to the index at levels of 8,500 points. the reality is that this one (the American) is still an economy that is in means of a greater change, indicated to Bill Or Grady, strategist in head of Confluence Investment Management to New York Times. the real debate with respect to Dow 10,000 is the burning subject today: which will be the form in which occurs to the recovery (of the economy). It is the anticipated correction of market more of history. For two months from Wall Street Journal, to the newspaper the Nation from Argentina they come reproducing commentaries of analysts and operators of he raises which it arrived at their aim to open the way to a correction of 10% like minimum. By all means, when the multiple voices are joined, the market takes the collision course. And it is what it seems to have happened in these two months. The 18 of August, a subscriber of our newsletter of investment Global Value asked to me: Paola, you see a 10% of loss in the short term as they say all or from it returns here to leave, what penss of recommended? the problem so that did not happen was as they say all.
I responded to him that it still did not see that 10% of loss, and that our Portfolio of Global Value had a potential major of raises. Indeed, the actions recommended in the report got to raise a 28% since then. One of the market principles aims at that a market can this sobrebought all along that makes lack until you are based betting to that happens. The indicators of sobrepurchase and sobresale are not reliable if they do not come accompanied by other tools evaluatorias from prediction.