Wednesday, December 26, 2007

Stocks Are In Demand Again

Equity as an asset class is again finding favour among investors after a brief sell-off this month. This is due to after when some chinese and american institutions decide to buy stakes in subprime victims like Merrill Linch and UBS. This has restore the confidance among trading community that worse is over for now and things are more clearer than before. Industrial commodities like copper, lead, zinc too have recovered from recent lows. Crude oil is also trading near it's highs and is expected to trade firm. However agri commodities continue to trade higher and is a concern from inflation and social unrest point of view. Equities will continue to find favour due to increased risk appetite and thirst for higher and higher returns.