a specialbulletin re present market conditions

this special bulletin was published by a very well known stock market ADVISOR today, not a broker, not an analsyt employed by a broker.
please digest carefully

Special Bulletin


The sharemarket has now had approximately a 15% correction from its recent highs around the 6800 mark. The major bank horror stories in the US are now out in the open and the relevant banks have applied appropriate bandages to their capital bases. Further wounded warriors will appear.

My view is we have seen the worst of this correction and we will now consolidate ahead of a sharp rally. Expectations for a US Fed Reserve rate cut at the end of January are now building from a 50 basis point cut to a 75 basis point cut.

This rally could well mark the low point of this correction in the markets, which could settle down into a trading range for some months until the markets sense better times ahead.

For subscribers who are underweight and looking to build their portfolios the following stocks we monitor are well in their buy ranges: the major banks - ANZ, NAB, WBC; ASX (the ASX stock exchange), JHX (James Hardie), CTX (Caltex), LLC (Lend Lease), MQG (Macquarie Group), PPT (Perpetual), QBE (QBE Insurance), RIO (Rio Tinto), TOL (Toll Holdings) and AXA (AXA Asia-Pacific).

Our database is showing many, many buys at present. I believe it is a good time to be building a quality portfolio. As always I remind that market timing is difficult and a quality portfolio well-bought, without debt and for the long term is by far the best strategy. Purchasing in times like these enables better value to be acquired.