The
Bank of Israel will
begin today a pilot program to invest a portion of its foreign currency
reserves in U.S. equities.
The
investment, which in the initial phase will amount to 2 percent of the $77
billion reserves, or about $1.5 billion, will be made through UBS AG and BlackRock Inc.
(BLK), Bank of Israel spokesman Yossi Saadon said in a telephone interview
today. At a later stage, the investment is expected to increase to 10 percent
of the reserves.
Full
story at: http://www.bloomberg.com/news/2012-03-01/israel-to-begin-investing-reserves-in-u-s-equities-today-1-.html
So
now our markets will be vulnerable to manipulation by foreign governments? This seems wrong on many levels. I wonder if the Chinese will be next?
Detroit
sold a lot of cars last month. Chrysler sales
were up 47%. That would seem to good anecdotal
news for the economy.
The
S&P 500 is 9% above its 200-dMA.
That’s getting up there, but it’s not extreme. When it gets up to the 12-15% range, I’ll
start looking for a correction. We’re
still due for about a 5% move down and that might be the pause that refreshes.
Today,
Thursday, the NTSM analysis remains BUY.
That’s not really a buy recommendation at this point; it just indicates
we are generally positive on the market.
The real BUY recommendation was
back in October.
I
bought back into the stock market at S&P 500, 1155 on 7 Oct after the 6 Oct
NTSM buy signal. I remain 100% long in
the long-term portfolio (100% stocks in the 401k.). (See the page “How to Use
the NTSM System” – the link is on the right side of this page).
Just
a reminder: 100% invested in stocks is way too much for most rational
folks. Don’t do it unless you have a
high tolerance for risk.
