Saturday, February 18, 2012

Sonders: Recovery Becoming Self-Sustaining

Charles Schwab’s Liz Ann Sonders, whose calls on the start and end of the Great Recession proved very accurate, says she thinks the U.S. economy is entering the second phase of its recovery, with the recovery becoming self-sustaining.

“I don’t want to say we’re off to the races again, because I don’t think we’re going to have really robust growth,” Sonders tells Harlan Levy on Seeking Alpha. “It’s not likely in a deleveraging environment, and the fact that we’re still dealing with this debt problem in the U.S. But I think we’re in the next phase of the recovery that is a little bit more self-feeding that improves confidence and improves spending, which increases demand, which makes businesses hire again, and you get a positive circle.”
Sonders also says that high government debts put a cap on growth, “but that does not mean we’re mired in no-growth territory. We’re likely to see better growth this year than we saw last year.” She says the “heart of this recovery” will be the manufacturing sector, which she says is a welcomed change after the last growth cycle, which was driven by “paper” — i.e., financial engineering.
Sonders also offers an interesting insight on the strong recent jobs numbers, noting that the household data in the Labor Department’s survey has been even better than the headline payroll number. “Household employment was up 631,000 in January. That’s a huge number,” she says. “You also have to pay attention to the fact that he household survey tends to pick up people who have become self-employed or who started a business and small businesses that aren’t picked up in the payroll survey, which tends to capture larger companies, and we know that’s where we’ve been lacking job creation. Where our economy tends to have its greatest job creation is in the small business sector, and it’s in that area where we’re starting to see some life.”
As for the stock market, Sonders says moderate economic growth could bode well. “If we stay in this 3 percent growth range, and that helps keep inflation at bay, that’s a pretty good environment historically for the stock market,” she says.

Feb 18 2012 : Bearish to Bullish Outlook

Special Situation Blog's CALL :-
1) We start turn from Bearish to Bullish Outlook because the risk of Europe Crisis is easing step by step.
2) Consumer Spending  in US, start recovering strongly.
3) China/Hong Kong export growth.

In coming months, we will raise our equity position.

Thursday, February 16, 2012

Gold Investment : Paulson Sells More of Gold ETF; Soros, PIMCO Buy In

Hedge fund manager John Paulson continued to scale back his position in the world’s largest gold exchange traded fund in the fourth quarter, while George Soros and PIMCO were among the notable buyers of gold ETFs, regulatory filings show.
Paulson cut his gold ETF holdings by about $600 million in the final quarter of 2011, Reuters reports. The hedge fund manager correctly bet against subprime mortgages, but large positions in financial stocks have burned Paulson recently.
In the third quarter, Paulson & Co. cut its holdings in gold ETFs by 36%. [Paulson Scales Back Gold ETF Position]

Selling gold ETFs was likely driven by client redemption needs as Paulson remained bullish on the precious metal, according to the report.
Separately, Soros and investment manager PIMCO boosted their stakes in SPDR Gold Shares (NYSEArca: GLD), which holds nearly $71 billion in assets. Gold futures were trading over $1,730 an ounce Wednesday morning. [Hedge Funds Tap ETFs for Stock, Gold Trades]
Paulson’s sales of GLD “have been more than offset by purchases by other investors,” according to Reuters. The ETF’s holdings climbed nearly 2% in the fourth quarter.
Many hedge funds use ETFs for low-cost, liquid exposure to gold. [Gold ETFs and Hedge Funds]
The gold ETF is up 10% year to date.

Wednesday, February 15, 2012

Singapore Among World’s Most Expensive Cities.

Moving to Singapore? Start saving: The city-state is one of most expensive cities in the world – 42% more expensive than New York – topping London, Frankfurt and Hong Kong.
The Southeast Asian city joins Tokyo, Osaka and Kobe as one of the world’s top ten most expensive cities, according to the Economist Intelligence Unit’s annual cost-of-living survey, increasingly proving that Asian cities are no longer just a cheaper outpost for expats and multinationals. Though a European city – Zurich – is still the world’s most expensive, Tokyo was the runner up, with Singapore now listed as the world’s 9th most expensive city. Singapore was listed as the 6th most expensive last year, but remarkably was ranked 97th in 2001.

The survey uses prices of goods and services such as food, transportation, housing, utilities, private schools and domestic help to calculate scores for each city, using New York as its base with a score of 100. Zurich and Tokyo scored 170 and 166, respectively, indicating that they are about 70% and 66% more expensive to live in than New York.


(Source : )

Tuesday, February 14, 2012

Undervalued Stock in Hong Kong Exchange @14 Feb 2012 : Hutchison Whampoa Limited

Hutchison Whampoa Limited

Hutchison Whampoa Limited (HWL) is an investment holding company. Its operations consist of five businesses: ports and related services; property and hotels; retail; energy and infrastructure finance and investments other options, and telecommunications. HWL is a container terminal operator. As of December 31, 2010, it held interests in 51 ports, including 308 berths in 25 countries, including container terminals. It develops and invests in real estate projects, ranging from office buildings to residential properties. Its diverse retail portfolio comprises health and beauty products, luxury perfumeries and cosmetics, supermarkets, consumer electronics and electrical appliances, and airport retailing. Its investments in energy and infrastructure are in Hong Kong, the United Kingdom, the Mainland, Australia, New Zealand, Canada and the Philippines. HWL is also an operator of mobile telecommunications and data services provider.
Mkt cap 324.87B
P/E 5.42
Div/yield 0.55/2.57
EPS 14.05
This group is one of investment holding under Lee Ka Sing. The high return of invested capital under Lee Ka Sing leadership, make this group to expand fast. With Strong Moat Business porfolio, this is a great business to buy if you're business investor.