1/04/2007

Asset allocators at work

Beginning of year is asset allocation time. Large speculators, pension funds, mutual funds and hedge funds looking to allocate large capital dominate the scene. Often these speculators have research advantage and they allocate money based on what is likely to do well. Most of the time it is combination of some sectors which have done well in the past one year plus some new themes.

Today you can see the asset allocators at work. They are focused on large cap biotechnology plays, technology plays and retail. If you see what is up currently, you can clearly read where the big boys see best opportunities. They are not always right and many of these stocks will have better buy opportunities for small speculator down the road, but studying asset allocation in first month of year is part of the overall tracking I do. The picture becomes clearer in few weeks.

Last year in January the allocation was focused on Steel and Iron, Silver, Oil and gas, Heavy construction, metals and mining and industrial equipment. If you see over the year most of these sectors did well.

3 comments:

Unknown said...

That's why I'm a bull.

Unknown said...

Strong recover. Lots of profits for those who bought this morning's dip.

Unknown said...

exhaustion gap up yesterday in UBB?

topping? maybe... we'll see