Monday, June 1, 2009

BRIC Stock Markets - how high is high?

A review of BRIC stock markets at Bespoke Invest points out:


BRIC (Brazil, Russia, India, China) countries continue to surge higher in 2009, as they've far outpaced stock markets of so-called "developed' countries. Below we highlight their year to date performance compared to the S&P 500. As shown, Russia is up a whopping 72.1% this year, followed by India at 51.6%, China at 44.6%, and Brazil at 39.7%. The S&P 500 is up 0.22%.




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This remarkable rally invites the question: How high is high? There is really no answer, except to keep on moving with the trend. The trend is up, which is all we can determine.

Together with Stocks, gold and crude also continue to rally, suggesting that the markets are anticipating inflation. Maybe, the current rally in stocks may continue since stocks are a hedge against inflation.

4 comments:

A Student for Life, of Life (and of Markets) said...

Very true. No telling how far it can rise. The charts will show signs of exhaustion when that time comes.

At another level though, this is a good opportunity to examine one's own investment portfolio allocation and rebalance it.

I speak from personal experience. One of the steps that protected my portfolio considerably from bigger losses during 2008 is that I kept sticking to my portfolio allocation throughout 2007. And I continue to rebalance it even now.

Manish Chauhan said...

Gold and stocks are an inflation against the inflation .

I interpreted that as "they are hedge against them because inflation is high" . Is reverse also true.

can we see inflation as a indicator in stock markets . When inflation goes really does , we can buy some stocks ?

Manish

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Bhupesh said...

can we see a 4672 level before we get into a good correction.