| Kevin Scully, the executive chairman of NRA Capital, made the posting below at his blog yesterday. Visit www.nracapital.com
Kevin Scully: 'Buy on weakness Fuxing, China Animal Healthcare, Asti and Jaya.'
My analysts received many comments from market players as to why "the resident bear" (my market nick name) was so positive....I also encountered many skeptical investors along the way. Remember my key argument was that stocks were very cheap compared to their historical levels across the world, interest rates would remain low because of a falutering US recovery and there would be no deflation given the steep yield curve. After the gains of the last few weeks, my target for the STI Index is now looking very achievable. Infact, I received many telephone calls and sms' last week from investors and friends asking me what stocks they should be buying. The current rally still seems to have some legs based on the technical indicators but I would prefer to hear the views of chartists on this. VIX index remains subdued at the low 20s level....one of the key factors for investors to return to equities
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