What is wrong with this guy? You maybe thinking who am i saying this time? Banking analyst Dick Bove, who a month ago rocked the markets with his call to sell everything in sight, has changed gears. After whatever had happened, Bove is advising to buy. That was quick to change your words after what had happened.
Stock market had tumbled down more than 16% since late July because of fear on US rating downgrade, and debt woes in European area. Investors and traders had sold off their shares and causes safe haven like precious metal to rise substantially. Just yesterday, Gold had crosses the $1900 mark, but reversed it's gain after a better economic result from China, resulting in risk inflow again. In addition, there are speculation that Fed may introduce another QE package to save the overall economy and is expected to mention something along that line in this week's Jackson Hole Symposium. Central bankers from around the globe will meet up at the Jackson Hole Symposium to discuss on the economic events and issues.
All in all, i do not know what had caused the banking guys to change their view. Perhaps it is on the persuasion from market forces, or expectation on Fed to issue a new QE program to save the economy. What i know is that do not pin too much hope on what to expect, especially in this kind of uncertainties. Remember the last Fed meeting, Fed's Chairman did mentioned to lower the interest rate further till 2013, and also may implement further easing program if needed? If you guys did not forget, Fed's Message to Markets: 'Stand on Your Own' Now.
Get it?
Renomic
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