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Monday, July 26, 2010

Market Comment, Valuation & Stock Picking

-Fears of double-dip recession are subsiding quickly. Earnings announcement, management outlook and recent economic news are reassuring investors that the global economy would not be as weak as investors had feared.
-What I am seeing in the markets are low Price to Earnings multiple (PE) stocks with growth potential or improving outlook, especially those levered to global growth, are being bought, while stocks that disappointed expectations and have high PEs are being sold. GE is a good example of the former, AMZN and NFLX are good examples of the latter.

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