Saturday, February 13, 2010

Ajinomoto

Though Ajinomoto is a safe stock to invest, it is not suitable for those looking for quick money. The stock is normally thinly traded and lacks volatility. Traders should avoid this counter. For investors with a long term horizon and looking for a good dividend yield, this stock is recommended.

China is concerned about their overheating economy. It's intention to raise bank reserve by another another 50 basis points come Feb 25,2010 has caused jitters in the US stock markets. After opening down 116 points, it eventually closed at 10,099 this morning, down 45.05 from it previous level.

China is doing the right thing. Speculation in its property market is excessive presently. If it doesn't take preventive measures to cool down its economy, it may follow the US market that has a severe downturn in 2008. If this happens, many people will get hurt not only in China but in other countries as well.