Thursday, February 12, 2009

News from the Blogosphere

How Sweden Resolved it's Banking Crisis. Will it take 3 years or more for the markets to recover?

Irish Banking Recap plan launched. But it's not the news which hogs the headlines.

Deflation comes to Ireland.

Ireland and Spain most 'vulnerable' to Rating Cuts. But fourteen other countries are categorised as resistant including Germany, France, Canada, New Zealand and Australia. Time to buy Aussies dollars?

Australia's commodity-based market shrugs off financial malaise

Aussie Visa applications register a heartbeat. Nigeria, Australia(?), Singapore, Philippines and South Africa round out the top-5 countries searching for this term. Students, pack your bags and take your books.

Stocks on the move. On Nestle:

Shares have been hurt, but analysts say they're now cheap and they remain very popular among fund managers.

Buy-and-Hold can no longer work as a throw-it-in-the-draw-and-forget-about-it strategy. The beatdown continues. A 200-day MA strategy is offered instead.

1. Maintain an 8% stop-loss on your ETFs.
2. Keep an eye on the trend. If your ETF declines below its 50-day average, that’s not a good sign. If the same ETF declines below its 200-day average, sell.
3. Don’t chase markets that are too hot. The last time many world markets and industry groups collectively hit new highs was in 2000. You know what happened then – the boom went bust. Keep your emotions in check.

With Zignals Stock Alerts you can set your ETF trades with 8% alerts and alerts on price breaks of 50-day and 200-day MAs.

From Abnormal Returns:

Where does that leave an investor today? Left in lurch. These are unprecedented times filled with volatility and opportunity. Ironically it may very well be the best time to come to terms with a new investment philosophy. Investment strategies crafted during the “great moderation” now seem downright quaint.

Investors should at this point realize that they are on their own. They need to craft an investment strategy that is both coherent and actionable. The distractions of CNBC and the pundit class can only serve to distract them from the important task of building a solid portfolio. In our next post we touch on some themes that can help guide investors in the search of a better portfolio process.

At Zignals we are here to help investors find their feet.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts, and stock charts website