RSS FeedBulls vs Bears
Posted by Senan
My colleague Emil takes a pretty negative view on the current state of the global equity market. His latest article, Outlook for Equity Markets, published today, cites what he calls ‘overly bullish indicators’. I believe him. However, I’ve been consistently hearing the same line from economist after economist. I believe them too. Problem is I also believe that trying to time the market would prove fruitless.
So next week I’m going to go with my gut feeling and invest some of my hard earning euros in a company that over the few months, as the rest of the market has thrived, has remained within a steady few % trading range. I’ve spoken about the company before – Exelon. Exelon is a large U.S. utility company with a healthy dividend. So as my initial foray into the market for 2009, this could certainly be considered a conservative play. Exelon deals in nuclear power which I think has plenty of scope for growth. Currently my dosh sits in a RaboDirect account earning 2% interest, so I feel a dividend based investment decision at this stage is appropriate.
The relative weakness of the dollar against the euro also makes this purchase more attractive. I’ve been reading everywhere recently of the demise of the dollar, so presumably it has further to fall. However my forex knowledge is very limited (perhaps to my downfall) so I’m going to plough ahead regardless.
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