| SN | Factor | Nature | Situation/Effect |
|---|---|---|---|
| 1. | European Economy | macro | Situation is still not looking good. Whether it is contained is unknown. Struggling to contain it. |
| 2. | US Economy | macro | Economic data showed growth is mild. |
| 3. | Company results | micro | Among the US companies, results are generally good. But these are lagging data. |
| 4. | China Growth Concerns | macro | Expectation is China will stimulate economy after hand over of power. |
| 5. | US fiscal cliff | macro | A big concern but no clear solution or direction in sight. |
| 6. | Consumer sentiment | macro | Generally weak in US. Job data has remained the same. |
The recent market reactions to the Obama re-election:
1. US market sold down for the first 2 days after election
2. Obama is not going to worry about market. He will be focusing on real economy
3. Market ignore good company results
Market sell down is to show color to Obama.Market sell down slow down next day. Selling pressure if off.
European is still concern.
Obama will be less concern about market. More about long term benefits.
China will shift to consumer based from export base economy reducing reliance on US and Europe.
Interpretation:
Short term market will face correction pressure. Over long term, the market will recover stronger with shift towards Asia. Focus on companies deriving income from Asian and South American markets. For long term investments, wait for correct to buy in.
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