18/04/2016 - 05:48

Are you feeling greedy or fearful, right about now?

18/04/2016 - 05:48

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The greed index is showing that at 70, investors are starting to feeling “good” about the prospects of the economy… should they be?

Retail sales were poor last month (-0.3%), unemployment is still high at 5.7% and the government may even call an early election? Where is the

Certainty? A big week ahead in US earnings will provide clarity…

Good Morning,

Trust that you had a nice weekend … Yes, Monday is here…

Grab your coffee and fasten your seatbelts, we have a busy week ahead….

So…

Are you fearful or greedy, right about now?

It appears that we are beginning to become more “greedy” and at a rating of 70, we should be worried …..

“buy” when everyone is fearful, and “sell” when everyone is greedy…

Is Greed Good?

Well…. Yes, when the economy Is improving…

Earnings… Earnings…. Earnings….

Investors will have a lot to digest next week with more than 100 S&P 500 companies reporting results, but the stock market is expected to remain relatively resilient with much of the potential shock from tepid earnings already priced in.

Notably, expectations for US earnings are poor (-9.3% earnings growth is expected), so any better figure, will see the US market higher………

“I think first-quarter earnings will come in better than the lowered guesstimates and am not expecting a big decline in the equity markets,” a senior analyst at a top tier bank told Market watch.

What's on today?

Local data: New motor vehicle sales March at 11.30am, NZ CPI

Fed speakers: NY boss William Dudley, Minneapolis chief Neel Kashkari, Boston's Eric Rosengren

Overseas data: China property prices March; Bank of Japan current account; UK Rightmove house prices; US homebuilder sentiment April.

Overseas earnings: Morgan Stanley, PepsiCo, Hasbro, WW Grainger, Netflix, IBM

The SPI is down 4 points this morning.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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