TORY CAPITAL

Welcome to the Tory Capital column and blog where you will find today's posts ranging from our look at the world financial forecast to our own updates and projections. Browse the calendar (right) to view older posts, and please let us know if our research helps you to profit in your own invesments and endeavors.

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» It’s about the 2 C’s.	2007-12-03

The recent activity of equity prices in various sectors is encouraging. P/E ratios for some stocks have come down which could attract fresh buying. We are still monitoring spreads and flows. It’s still about the A-B-C’s ……..paper that is. A short/medium term rally may occur as some equity prices are attractive for long term holding. We are rebalancing and looking for value. Rotating between sectors that have underperformed may be a good strategy for now. We are ready to revisit growth themes if the underlying conditions in markets improve. We will be more bullish if consumer spending is robust. Currently we are more concerned with consumer spending (not sentiment), especially on small ticket items at reduced sale prices. This is a major factor in our bullish outlook. TCI is now conducting research on credit and consumers. Proper asset allocation is also important. Regardless, some equity prices are at a deep discount compared to their historical valuations. We’ll keep you posted.