Here's an example of the virtous/vicious circle effect. Citigroup's rescue has meant that the mortgage backed securities that were causing it the problem in the first place are also bouncing. I assume the market feared they were going to have to dump them and everyone else would have to mark to market at a loss. On top of this other banks have been shorting the indexes in order to cover their own potential losses. So fundamentals have now improved for all banks holding mortgage backed securities - not just Citigroup.
Short term quite likely the DJIA will have a modest pullback from the big bounce, but time to watch for signs of improvement in the fundamentals -not so much the trailing indicators like GDP etc.![]()
- Forums
- ASX - By Stock
- XJO
- tuesday trading
tuesday trading, page-18
-
-
- There are more pages in this discussion • 131 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add XJO (ASX) to my watchlist
|
|||||
Last
8,091.9 |
Change
46.800(0.58%) |
Mkt cap ! n/a |
Open | High | Low |
8,045.1 | 8,091.9 | 8,045.1 |
Featured News
XJO (ASX) Chart |
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online