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Peter Canelo, an investment strategist at Morgan Stanley Dean Witter and a longtime optimist about the direction of stock prices, issued an even brighter assessment yesterday.
A macro trader, he is known for making big sweeping bets on the direction of stock exchange indexes, commodities and currencies.
While profitability of larger banks has improved, their shares are likely to fall in the near future, the central bank said, citing an analysis of options — securities that investors use to bet on the direction of stock prices.
Other strategists also think corporate earnings are a vital indicator of the direction of stock prices, but they spend more time trying to determine what earnings may be in a year or two.
To mention a few, the author in [8] predicts future direction of stock price index using SVM model.
Our approach for stock selection is based on knowledge discovery in large databases technologies; more specifically, we build techniques that allow one to discover hidden price patterns which are capable of predicting the direction of stock prices.
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That can change the direction of stocks minute by minute".
Commodities and real estate, for example, may move in the opposite direction of stocks.
Banks, pension funds and other big investors use them to bet on the direction of stocks, bonds, interest rates and commodities.
The Lede blog is tracking developments in the markets Friday looking for clues to the near-term direction of stocks and bonds.
(And they are not to be confused with balanced funds that have a mix of bonds or cash, or more exotic "inverse" funds that move in the opposite direction of stocks).
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