If QE2 happens this week, stock market secular bear trend will
1. Rise sharply
2. Drop fast...
3. Rise very sharply in Q1 2011
Gold may rise sharply but foreign investors will be wary of US currency depreciation by 10% or more by end of this year. Economists projecting up to 20% depreciation next year if QE2 kicks off.
Money will flow aggressively to emerging markets and Asia. Asia's laggard blue chips with strong balance sheet and profit growth, follow by laggard mid-cap stocks and may include small cap speculative stocks up sharply before pulling back... Nevertheless, caution on major stock market trend reversal this week if any! We're neutral and prefer to buy at near bottom and catch stock market trend "Rise very sharply"...
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