Wednesday, March 16, 2011

The Time To Buy Is Still Yet

The earthquake in Japan has caused panic selling but buying when there is literally blood on the streets is not advised. The jitters is caused by fears of a nuclear fallout in Japan rather than the damage done to the economy, and the sharp fall across the region is due to the fact that Japan is the second largest economy and also has a significant carry-trade. And since this means that since the big boys (hedge funds and institutional funds) - are affected,  their holdings mainly in blue chips and large caps will be first to be sold and converted to cash. I will watch a while more before taking action this week to buy stocks but those keeping an eye should look at those that I just mentioned.

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