John Paulson says now is the time to buy a house in America

John Paulson says now is the time to buy a house in America. He is bullish on real estate and gold. Paulson, the man who made billions shorting financial stocks before the crisis, says we are now at the tail of the credit crisis, which has stifled much home buying. He believes we are in the midst of a sustained recovery with a less than 10 percent risk of a double-dip recession. But while he's bullish on America, he's not as optimistic on Europe, calling it the "one soft spot" in the world.

Robert Prechter is bullish on dollar and bearish on stocks

Robert Prechter is bullish on the dollar and bearish on stocks for the moment. This is because there is 6% bulls left in the dollar, as on 11 Aug 2010. As for the stock market, studying the Dow's wave structure since the top in April 2010 and comparing it with other wave structures, he discovered a similar set-up to 1987 before the October crash. He adds that "It doesn't mean there has to be a crash, but it does mean keep your cash cool. The market needs another leg down." The full report here.

August is a bumpy month for stocks?

According to the CLSA Feng Shui Index for stocks, 10 August to 7 Sep will be bumpy for stocks. This is becuase this is the month of the Metal Monkey and "Springers (Tigers) and swingers (Monkeys) make for strained bedfellows,and we’ll all do well to watch our health, wealth and happiness during these next few weeks. Expect volatility in all spheres. That said, when the going gets tough, the bargain-hunters go shopping, and this month’s market jitters should see some value propositions carelessly cast aside."

How accurate is the almanac?
In Feb, it predicted good month, but stocks went down. 0-1
In Mar, it predicted bumpy month, but stocks went up. 0-2
In Apr, it predicted bumpy month, stocks peaked. 0-3
In May, it predicted bumpy month, stocks went down. 1-3
In Jun, it predicted great month, stocks went up. 2-3
In Jul, it predicted good month, stocks went down then up. 2-3
In Aug, it is predicting bumpy month. What next?

This strategy is definitely worth researching

I recently heard about a strategy which allows an investor to earn rent on his shares. It is commonly known as a covered call strategy. According to Karim Rahimtullah, "When you sell call options against your shares that you already own, you’re getting paid to sell your shares at a higher price.
And that only happens if the shares close at or above your chosen strike price when the options expire. Think of it as collecting rent from your portfolio. And who doesn’t like collecting rent?"

Definitely a great idea, but how to do it? Will explore more on this.

Is BOA worth buying?

I am vested in BOA (America's No.1 bank), but am running a paper loss. According to this article however, BOA is definitely a buying opportunity right now. This is because earnings are expected to rise next year due to reduced provisions for bad loans.

Institutional Buying actually increases during last two months when markets corrected!

Stock buying by institutions actually hit a peak last month, even as retailers sell out amidst the stock market correction. They are betting that forecasts for the fastest US profit growth in 15 years and economic expansion averaging 3% through 2012will help equities recover after S&P 500 fell 13% in May and June. Personally, I have used the correction to enhance my positions.My portfolio now include:

Bank of America 15.06
NOL 1.93
SembMar 3.80
SOHO China 4.87

Citigroup says China equity market near bottom

China's stock market, the worst performer in Asia this year, is near bottom, and may rally as much as 14%, as policy tightening concerns ease amid slowing economic growth, according to Citigroup Inc. The Shanghai Index may reach 2800 to 3100 before
year end. But, the market will be mixed in the near term before being spurred by a
"liquidity rally". Recommended sector are consumer, insurance, transportation, healthcare, auto, technology and electrical machinery and equipment.