New month … new hope
Welcome to February … After a horrible month … everybody buys 
…
Here is why …
1. Statistics … If you take the 10 worst Januarys of all time, February average performance is positive and the average additional loss for the year is ONLY around 1%
2. If you battle against your benchmark … just lock in your benchmark now and you are ahead 6 to 10% for 2008 (if you stayed in cash for January)
3. Markets were cheap valuationwise at the start of the year and are now MUCH cheaper … even more as interest rates were lowered aggressively.
4. First day of the month and deals start rolling in … Alcoa and their Chinese friends go after Rio Tinto … Microsoft buys Yahoo to compete with Google.
5. Bond Insurers seem to come closer to a “bail-out” plan … will it end like the Superfund which never happened? 
Even weak payrolls could not stop the rallye … BUT be aware … so far it is only a technical correction … still a downtrend … still the odds for lower lows …
Interstingly, the Euro lost after being up nicely against US Dollar and YEN … Oil, Natural Gas and precious metals sold off 2 to 5%.
Let’s see how far we get to the upside … US charts show morning star like formations on weekly charts … usually a bullish sign.
Tags: Alcoa, bond insurers, Google, January, Microsoft, Rio Tinto, Yahoo
