Tuesday, April 15, 2008

Ten Reasons To Invest In US Equities


Blackrock's ten reasons to buy US stocks via Reuters:

1) Investor and consumer sentiment measures are very pessimistic, which often marks the bottom of equity market falls.

2) Monetary policy in the United States is being eased earlier and more rapidly than is usual.

3) U.S. households are about to get fiscal stimulus checks from the government.

4) The current earnings recession of negative year-over-year comparisons will last four quarters. Q2 2008 will be the fourth.

5) The cheap U.S. dollar means boom conditions for U.S. exports, a significant offset to the residential real estate recession.

6) The health of the non-financial corporate sector remains strong, with healthy cash flows.

7) Credit-related downturns often include the failure of an important financial organization, followed by double-digit growth in the S&P 500 <.SPX>. The failure of Bear Stearns on March 17 has passed.

8) Credit markets have improved noticeably since Bear Stearns' failure.

9) Technical factors have also improved since March 17, including the fact that up-day volume has been heavier than down-day volume.

10) The earnings yields of equities compared with 10-year Treasuries are at their best level in 30 years.

1 comments:

Anonymous said...

#3 wow... $600 per person. I'm sorry but that is going to pay off bills and not spending on new product.

#5 Sorry again. In case you didn't notice. The U.S. imports way more then we export.

#6 Can you say MGM cutting 440 middle management jobs? It's only the beginning

 

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