Weekly Markets Thoughts - October 07, 2007

By: Stefan Penkov

New all time highs or new bull market highs all over the places! The enthusiasm is taking over the reason one more time but as investors we should be able to take advantage of every situation. The main goal being to make profits we should always stay vigilant. It has been a good run and there is still a room for more but after such an advance a temporary pull back could occur at any moment.

The sock markets are doing fine. Most of them are not at new highs yet but it is coming soon. Especially those heavily weighted with resource related companies. People already forgot the August turmoil and the credit problems the USA are overloaded with. Among the strongest indexes we can count NASDAQ, HANG SENG and TSX S&P 500.

The currencies are maintaining their strength against the dollar. The Canadian dollar is firmly holding its leading position among them. Last week it reached new highs against the US dollar and consolidated its strength against the other major currencies. The Canadian economy has definitely the strongest growth rate among the G8 and with the resources being so popular we should surely bet that the Canadian dollar will maintain its leading position in the years to come. Other good currencies to bet on are the EURO, the Australian dollar, the Swiss franc and to some extend the British pound.

The resources are getting very strong. Gold is leading them at this moment and it is going to stay on top in the upcoming months. Silver is finally finding the way up and after crossing and staying above a major resistance it is definitely a player to thing strongly about. Oil is advancing surely as well and the $100 mark is within a reachable distance now.

As mentioned two weeks ago, the Fed reversed the uptrend of the interest rates. We are now in a corrective downtrend which is here to stay for the next little while. The decreasing trend will last about a year or so which in turn is boosting the bonds value.

Overall, we are living a period of abundance everywhere and this is not a time for experimenting strategies or for buying obscure companies. If you want to make very good profits and keep the peace of mind just stay with the flow.

Best regards and good investing,

Stefan Penkov

www.investinghelptoday.com

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About the Author:

With more than 15 years of professional experience coupled with a strong academic background, Stefan Penkov is becoming a reference in the investing field. He kindly accepted to share his markets opinion on a weekly basis. The InvestingHelpToday team is very pleased to have his valuable contribution to the site. You can contact him by clicking here.


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