Two Ways: Who's Afraid of Inflation?
Strengthen your portfolio in good times and bad.
Cohen acknowledged that the capital markets are still tight, but said they're "moving back towards normal," and corporate earnings could surge despite the current lackluster macroeconomic picture. But exporters could still be constrained: US trading partners (such as Europe) will take longer to pull out of their recessions, and will post slower growth.
Cohen believes investors will have to look to the energy sector, and to economically sensitive areas like technology and new equipment for outperformance. She also warned that inflation fears are "spectacularly premature," and doesn't believe it will "rear its ugly head any time soon."
For another perspective, see Professor Kevin Depew's Five Things: From Green Shoots to Growth in 60 Seconds?
From the Bull Pen: If energy is the theme, look to Transocean (RIG) holding its 20-day moving average. A sell stop can be set below that level for aggressive traders.
From the Bear Cave: Although it's an energy-related stock, First Solar (FSLR) may be sitting on top of a large air bubble. First support is its 50-day moving average (currently $172), but breaking below could signal $150. Those playing the downside can set a buy stop above $185.
Have a good night!
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