- US Downgraded by S&P by one notch
- Employment gains beat expectation at 118k
- European bonds purchase
- Dow Jones sinks by alot with financials taking the most beating
BAC is at a 2 year low.
Markets look like crap but some brave investors are taking one step back and waiting to press the buy buttons on some reasonable bargains.
Outlook from henceforth: USA will be experiencing slow growth, money will continue to flow to China and Asia as US lose its sovereign status.
What’s the trade?
1. HIGH YIELD Bonds (Low interest rate to continue and expect QE3)
2. TECH space
3. Asian counters – Retail, property, REITS
4. Infrastructure boom for Asia
5. Energy
6. Financials (deeply undervalued)
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