On the other hand, there is tremendous hot capital around the globe. Some impatient investors began buying on news and created a herd of nervous buyers. Seeing that market have strong support, long term investors are reluctant to sell further.
The sudden surge in market signals to market participants that buying interest in equity stocks is rising as confidence in the economy is slowly returning as well as rise in global wealth. As market is buoyed by hot money, market participants are looking for investment return and the risk appetite drives the demand for risk assets. Market is expected to move sideways with oscillation while more buyers will lead more investors back into equity stock market. In short term, market will move in a slight uptrend.
What's Behind This Tech Season's Launch Blitz?
In the modern age of computing-that is, in the last couple of decades-we've never seen a launch season like this. There are billions of dollars in profit at stake over the next 12 weeks alone.
Nokia, until recently the biggest name in phones, launches a must-win smartphone lineup Wednesday. A couple of hours later, Google, the biggest name in Internet services, is expected to stage its first major device launch since taking over Motorola Mobility.
On Thursday Amazon, the biggest name in online retail, will take the wraps off a new line of Kindle tablets and e-readers. And next week Apple, the most valuable company in the world, will launch the latest version of the iPhone, the product that earned it the title. Also expect to see new iPods, and next month, a smaller iPad.
Microsoft, the biggest software company in the world, late next month will launch Windows 8, the most radically redesigned version of its flagship operating system in 20 years. At the same time it will launch its first tablets-a risky move that could either put it on the map in mobile, or start unraveling the partnership with hardware makers that helped Bill Gates define the PC era.
There are more, but you get the idea.
Why the crush of product announcements?
The best explanation I've heard came from Paul Jacobs, the CEO of mobile chip powerhouse Qualcomm, supplier to practically all of these companies. When I sat down with him late last week during one of his trips to Silicon Valley, he pointed at Apple. Apple became the envy of the tech industry, he said, by coming out with devices that knit together hardware, software and services in a cohesive package. Now everyone else is launching mobile hardware to try to keep Apple from eating their lunch.
He's right, of course-and there's more to it than that. Apple leveraged the iPod's success to make the iPhone, and the iPhone's success to make the iPad. Given the iPad's growth rate, and the PC's decline, Apple could soon start sucking the majority of the profit out of the PC business that Microsoft and Intel have traditionally ruled.
European Stocks Could Correct Up to 20%: Faber
European stocks, which have been in a broad upswing for the past three months, could retreat by up to 20 percent, presenting an opportunity to move back into the market, says Marc Faber, author of "The Gloom, Boom & Doom Report."
Faber, often referred to as Dr. Doom because his commentary generally veers on the negative side, said his investment decisions were based on his view of a collapse in the global financial system.
If troubled peripheral members of the euro zone leave the currency bloc, investors could position for this by buying European shares, he said.
"In the worst case scenario that the euro collapses and Spain and Italy for example exit the euro zone, the markets of these countries will adjust to the upside," Faber said.
Faber said he also favored holding physical gold, an asset that was likely to hold some value in the event of a collapse in the world's financial system.
"I would hold physical gold with a country that has a culture with gold such as Australia. In a collapse, the gold price could fall 50 percent, but if everything else falls by 90 percent, then you are relatively well off. So I would hold some physical gold regardless of the economic outcome," Faber said.
Home Builders' New Problem: Too Few Workers
After losing 70 percent of their business in the housing crash, the nation's home builders are breaking ground again. New orders for homes are rebounding strongly, and housing starts have shown sustained growth over the past year. The demand is there; unfortunately, in some areas, the workers to build these homes are not.
Dykstra sees buyers taking advantage of low interest rates and low home prices. He is building about forty houses a month now, but says he would build sixty if he had enough labor and contractor support.
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