Sunday, January 14, 2007

Think ahead Beat the banks

Banks are now allowed to invest up to 25% of their paid-up capital in other listed or unlisted companies. Before, they are only allowed up to 5% in selected blue chips. This means that there will be very much more money in the market to buy shares.

Blue chips have become very blue (expensive). Will the banks start buying blue chips now or will they push them down before they buy. Do they have the muscles to do that?

What kind of stocks will they be looking into? Baby blue chips, dividend counters, or mesdaq counters? If you can figure that out correctly, the money is there for the picking.

Put on your thinking cap. Beat the banks. If you have a good idea, please comment.