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Goldman Sachs Recommends

 

The market is  down , up , down ,, up.......

AFTER eight sessions in the red, the share market was finally trading back in the black at midday, boosted by financial stocks.

This year seems to  have started with a rocky start  and thats what all the analysts  are saying it is goin g to be for the rest of the year. Goldman sachs is saying  we should be picking stocks  that is not sensitive to  interest rates , and what may those sectors or stocks be

Apparently they should be  the defensive stocks like

Comsumer  staples

Healthcare

Telecomunications

 We should be looking for companies with robust balance sheets and non -cylical earnings.

 

Bell potter securites says that  comnpanies with  strong balance sheets, cash flow and earnings per share growth performed well in times of slow economic growth

 

Popular Investment firms analysts says  these stocks are good in such conditions

 

CSL - Blood and vaccine products

WOW - Woolworths Retailers

Fairfax Media

Onesteel

BHP Billiton

RIO Tinto

Caltex australia

Beach petroluem

Resmed

Metcash

Coca cola Amatil

St george bank

Singapore telecomunications

Healthscope

Harvey Norman

Seek

Lihir gold

Macarthur coal

 

Companies that have free cash flow  that exceeds thier  dividend  yields payouts are aq good bet.Stocks offering strong balance sheets and non-cyclical earnings have become a focus. Morgan Stanley has identified a number of defensive stocks that satisfy these criteria, including

Beach Petroleum, Woolworths, CSL and St George Bank

Interest rates look set to rise next month as tight labour market conditions continue to fan inflationary pressures in the economy.

Since the high point of mid-October, the market is down 939 points and analysts say there is more downside to come.

Evidence that the equities nerves were not about to settle came last night as the London market eased another 1 per cent, after the 3 per cent drop on Tuesday night.

There was feverish selling of stocks throughout the region. The Hang Seng index in Hong Kong sank 5.4 per cent and the Nikkei hit its lowest level in more than two years, losing 3.34 per cent.

"People aren't worried about the volatility, they are worried that all the market is doing is going down," Macquarie interest rate strategist Rory Robertson said last night.

The global commodity markets have been caught up in the international equities problems, despite recent solid strength.

The prospect of a global growth slowdown prompted investors to sell down commodities in London. Three-month copper futures lost 3 per cent and the price of oil slipped by $US2 a barrel. The recent gold rally halted in Asian trading as investors went to cash, causing the price to drop sharply from $US909.50 to $US882.10.

UBS Sydney chief strategist David Cassidy said domestic stocks would fall further if the US went into recession.

There was speculation in the financial markets yesterday the US Federal Reserve was about to convene an unscheduled meeting to slash the funds rate in a desperate bid to save the US economy from tipping into negative growth.

 

SAFETY FIRST

Analysts said they don't expect a return to normal market conditions in the near term. The latest fright for investors was Citigroup Inc reporting an $18.1 billion write-down -- largely on collateralised debt obligations -- and a $9.83 billion quarterly loss.

"We need two things," said Craig Saalmann, a credit strategist at JP Morgan. "We need to be comfortable with U.S. investment banks, they need to come clean and recapitalise and secondly, we need more data about the U.S. economy."

 

 

Stocks end in red as miners falter

  • 5:03PM
  • The sharemarket closed lower on Thursday, making its ninth consecutive negative close for the first time in more than 12 years.

Global Markets -Tokyo rallies on $US rebound

  • 6:27PM
  • Tokyo shares rose 2.1 per cent on Thursday, bouncing back from a two year low as a firmer dollar helped ease fears about an American recession but plenty of caution remained in a very volatile Asian session.

$A tied by risk aversion, bonds dip

  • 5:55PM
  • The Australian dollar held around 88 US cents on Thursday, recovering from a one-week low hit offshore, with robust domestic data pushing it higher but lingering risk aversion checking gains.

Greenback holds gains ahead of Bernanke

  • 5:36PM
  • The dollar held overnight gains against the euro on Thursday after comments by a European Central Bank official fuelled fears that American economic weakness might be spreading to Europe.

Gold retreats as greenback fights back

  • 4:03PM
  • Gold extended losses from a record high on Thursday, surrendering as much as $US8.60 an ounce as the dollar held on to its gains against the euro before testimony by US Federal Reserve chairman Ben Bernanke.

Street Talk Online: Banks could face ill winds

  • 1:49PM | By Anthony Hughes
  • Get the latest on what the key market players are talking about

Broker Watch: Latest upgrades and downgrades

  • 10:07AM
  • Following is a summary of broker changes to their company recommendations and upgrades and downgrades to earnings estimates.

Margin calls heading for new highs

  • 17 Jan 2008 | By Zoe Fielding
  • Margin calls could hit record highs if markets continue to fall this month, according to financial institutions.

Street Talk - Intrigue growing in forestry and grains

  • 02:29AM | By Edited by Anthony Hughes (ahughes@afr.com.au)
  • The Australian Competition Consumer Commission's call for submissions on Sumitomo Forestry's bid for Carter Holt Harvey's $2 billion sale of its wood products business is further proof that the deal is not dead.

Wall St ends lower on Intel disappointment

  • 09:00AM
  • Stocks fell on Wednesday with Intel's disappointing outlook dragging the S&P 500 to a 14-month low.

Euro flops after ECB's Mersch warns on growth

  • 08:43AM
  • The euro fell sharply on Wednesday after a European Central Bank official warned that growth in the 13-nation region could be slower than expected, fanning fears that US economic weakness might be spreading to Europe.

Treasuries hit by profit-taking after huge strides

  • 09:13AM
  • US Treasury debt prices eased on Wednesday as investors cashed in on a string of gains that had pushed benchmark yields to a more than four-year low.

Fed's Beige Book confirms slowing economic growth

  • 06:45AM
  • Growth in the US slowed in the final weeks of December amid subdued holiday spending, according to the latest survey of economic conditions compiled by the Federal Reserve.

FTSE falls on US recession fears, commodities

  • 04:41AM
  • Britain's leading sharemarket fell 1.4 per cent on Wednesday, caught in the swirl of rising US recession fears.

Copper ends lower as global economic confidence crumbles

  • 04:45AM
  • Copper prices slid to one-week lows on Wednesday as investor confidence crumbled in the face of a deteriorating outlook for global economic growth and demand for the metal used in power and construction.

Mumford: Ticking off the myths for jumpy punters

  • 04:25AM | By Glenn Mumford
  • The market looks to be telling us that the world as we know it is about to crash and burn.

Eighth day of gloom for shares

  • 04:36AM | By Peter Wells and Eli Greenblat
  • The sharemarket suffered its steepest loss of the year yesterday, continuing an eight-day losing streak that has wiped almost $100 billion off the benchmark index.

Growth concerns tip $A off US90¢ perch

  • 04:25AM | By Katja Buhrer
  • Investors who thought the Australian dollar's rise above US90¢ this week had put the currency back on a rising trend were wrong-footed yesterday, following a US2¢ drop in the local unit.

Panic selling belies long-term strength

  • 04:26AM | By Stephen Wyatt
  • The panic buying that has sent gold and crude oil to record levels in the past month has turned into panic selling as fears mount that a slowdown in the United States economy will crimp demand for commodities.

Good returns on right horses

  • 17 Jan 2008 | By Gabriella Hold
  • Small-cap stocks usually aren't at the top of the list for most investors but thanks to the meltdown in global markets, the sector is grabbing attention for all the wrong reasons.

Taking stock - AIO, ERA, BLY, CLO, NWS

  • 02:26AM | By Alex Boxsell; Michael Smith
  • Shares in port and rail infrastructure group Asciano have travelled an uncertain path so far in 2008 amid market speculation of a potential assets sale.

Market mix

  • 17 Jan 2008 | By Alex Boxsell
  • Retail sales remain buoyant even as housing cycle turns

Overseas markets

  • 17 Jan 2008
  • S&P 500

Rear window

  • 17 Jan 2008 | By Edited by Andrew White (rearwindow@afr.com.au)
  • All change at MFS - including the name

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