- On 02 May 09 Warren Buffet, Chairman of Berkshire Hathaway, refused to repurchase shares of his company because in his wisdom the company's shares are not yet trading "demonstrably lower than intrinsic value".
- Mother of all present US economic woes is the Jobs Report which will be out this Friday. The only way you can kick start the US economy is by increasing consumer spending since 70% of its GDP is linked back to consumer. And consumer spending is linked back to jobs. The report on Friday is expected to show slower decline but turn around is still nowhere in sight.
- Thursday, a day earlier than Jobs Report, will unfold the critical report on US Govt's Supervisory Capital Assessment Program, aka "Stress Test" imposed on 19 major banks. One can expect severe shocks here since last week media reports indicated that Bank of America and Citigroup had capital shortfalls.
- Coming Wednesday market can get wind on private-sector employment from ADP . On Tuesday, the Institute of Supply Management will report its April index for the service sector. On Monday, data on pending home sales for March will be made public. And on all these fronts uncertainty looms large.
- As if all these uncertainties were not enough for the coming week, we will also have Ben Bernanke testifying before Congress and you can wonder your way to high heaven about its outcome.
Where does all this leave the retail investor in India? The situation demands that we show some more patience before buying. Those making profit from their portfolio should consider to make their positions lighter. And if you are the brave hearted kind, do stop by to buy some good put options. I shall also be recommending some put options in a subsequent post. However for buying in cash segment I can only recommend that you take a deep breath and hold on to your purse for some more time. Nifty has to at least test 3150 again before any further move up is feasible. In the meantime you can look up the Link List in my blog for some really good reading material. You will not be disappointed.