Highlights:
- U.S. ISM index continues to recover, at 6 year high.
- U.S. GDP rose 5.6%, at 6 years high.
- Obama unveil $3.8 trillion budget, record breaking deficit.
- US S&P 500: 78% of companies quarterly reports so far beat analysts' profit estimates.
- South Korea's export gain (47.1%), highest in 2 decades.
The world economy has rallied too fast and furious, and we are now looking at extremely good data. We definitely need tightening, interest rate hike, etc.
But, the bear is biting on the "tightening" as a reason for correction.
With these controls, we will still see economy improving at slower rate, and definitely not collapsing. The sentiment right now is at the fear side. At such condition, the stock market might take in the "tightening" as "bad bad news" aka "worst scenario".
The Shanghai Stock Exchange has dipped 10% from year-high.
DJIA dropped 7% from year-high.
Good opportunity to buy? Unclepicks will start to collect when time is right. Stay tune. :=)
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