The fundamental of the economy in the US is not the best. The intervention form the fed and the Bush administration came to late. Real Estate in the US is a masive consumer system. It is not done to last, it is simply done to make the contractors rich and to give people problems. It is a wrong concept not like Europe where the construction is made for generation to come. The result, a high cost in the future and insurance companies in trouble. Constructing methods and strength quality with create on the long terms turbulences on the economy. The practice of high prices for untrue value means high speculation and when the prices increase on real estate just like the past years it result simply speculation. That situation created a fall back to its basic value. That reality, created turbulences on the mortgage system in addition to the over lend margin value and a lack of analysis skills from the lenders to target the qualified clients. Mortgage Lenders seems to have been themself unqualified to advise their clients with ethics manner. They actuated as pure Golden Boys; What a shame.
The mortgage was simply the trigger within the wrong moves and actuation of the US authorities under bush administration and others in the past. The economy in the end responded negatively. Europe and Asia will follow being the kissing cousin of the US. Nevertheless this will rebound and a light in the tunnel is at sight it will just take two years almost three.
Investors must look to invest by using their own judgement and analysis skill. In our days things are changing fast and might be on the positive track.
My humble suggestion will be for investors who still has some cash available of course. If you want to buy stocks from banks, buy Swiss banks and the remaining large banks in the US, the one that were saved by the fed. Diversify your purchase in currencies and in securities. Energy: buy in green energy especially biodiesel, Food & Beverage: buy large institutions not local but multinationals. Cars makers: buy the one in emerging countries with new projects corresponding to the actual necessity mass conditions. Local ones that have visions for the future.
Moment has come to buy. Select your purchase in the stock market. Buy per part dont put all your purchase order all at ounce.
My suggestion to buy:
Banks: Credit Suisse, UBS, Bank of America, HSBC and others.
Cars: Tata from India. Best poterntial, will triple in two years. Excellent vision will have massive sales on mass car production.
Energy: all companies that produce biodiesel or related to it. Luirgi Gmbh from Germany (biodiesel turnkey plant industry). Ask your banker to advise you.
Food & Beverage: all multinational producers of food & Beverage and related; Nestle, GEA / Niro, and others.
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Yves Conti
Investment & Asset Analyst
Project Analyst |