Rising bond yields, weakness in the utility stocks and a deceleration in 
Foreign Official Dollar Reserves growth suggests that the risks of a correction in asset markets occurring now, or very soon, have increased considerably. In fact, it is very likely that sometime in 2007 most assets can be bought at lower prices than they are selling for today. Rising markets bring about more liquidity. When markets reverse, liquidity dries up rapidly. Moreover, nobody will knock on your door and let you know that liquidity is about to diminish! If liquidity suddenly or gently evaporates, the most vulnerable markets will be today’s most popular themes: Industrial commodities (nickel, tin, etc.), brokerage & exchange shares, and extended & popular emerging stock markets (India, China, Mexico).
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Foreign Official Dollar Reserves growth suggests that the risks of a correction in asset markets occurring now, or very soon, have increased considerably. In fact, it is very likely that sometime in 2007 most assets can be bought at lower prices than they are selling for today. Rising markets bring about more liquidity. When markets reverse, liquidity dries up rapidly. Moreover, nobody will knock on your door and let you know that liquidity is about to diminish! If liquidity suddenly or gently evaporates, the most vulnerable markets will be today’s most popular themes: Industrial commodities (nickel, tin, etc.), brokerage & exchange shares, and extended & popular emerging stock markets (India, China, Mexico).For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
