Sunday, November 27, 2011

The Big Bull Is Back.

People often come to me and ask me which financial TV channel I watch to predict markets I often laugh and say I watch “ Animal Planets”.
It’s true to understand stock markets you should be watching “Animal Planets”.
Why? Answer is that markets are like animals .If you can predict what animals will do you can predict stock markets.
For past one year I was in love with Bears. Now I see them going in for hibernations.
 Which animal is going to rule the financial equity jungle? .Answer is logical it’s “Bull”.

Yes world will be amazed to see me as “Bull” for coming few months. So welcome to “Bull Zone”. After being bearish it’s time to get Bullish.
Now watch out for aggression of bull around the world to come up and show there revenge on bears.

So what this bull zone is going to provide us?
First watch Dollar carry trade in equities to begin.
I also see Yen carry trade to start as yen shall be no more defensive bet.
Now just imagine where these stock markets will go on up side if these both mother of all carry trade starts.
What I see is major short term rally to fuel bump up in equities prices in near term.
Watch to fund mangers allocation level around world. They are highly underweight on equities.
Even small allocation to equities will start storm in stock markets .Ferocity of this bull zone is going to so furious that bear around the world have to take it on there chin if they don’t cover.
Markets often move in cycles and smart speculator is always first to see change in trend in these cycle. Don’t be rigid bear now change your stance now be Big Bull now.

Life in stock markets is like jungle. Just be right animal at right time.

Thanking you
Atul Sikrai.
Sr Vice President & Head of Equities
witdom investment advisory.

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