Loss Momentum as Financial Fade

S&P 500 Weekly Momentum

S&P Financial Sector

With above 2 charts, we can see that S&P 500 Index loss momentum as Financial sector show fading momentum in rally. Well S&P still loss 62.54% from their 2007 peak; a lot of room to fill. Some economists expect Double Dip in 2nd half of 2010. Many opinions is spreading around now and Future is not us to see.

And at some point Fed will raise interest rate but not soon for sure. Some risk still on the commercial real estate market right now but current P/E of stock market still look promisingly cheap compared to highest number at the tech bubble in 2000; however, you must be more selective and cautious as some downside still remain.

We know sure things that are the Fed won't leave US in Recession for long, the Fed will continue pump up stimulus as much as they can afford and "TOO BIG TOO FAIL" scheme still have its day as long as Mr. Bernanke alive.

Potential Market Risk and Opportunity:

1. P/E look reasonable at fair value.
2. A Commercial Real Estate is A walking zombie now.
3. Fed will not raise Interest Rate at least 12-18 months.

Que Sera, Sera (Whatever Will Be, Will Be) ....................

Future is not us to see ....... Que Sera, Sera.