Esteemed market commentator, David Buik of Panmure Gordon joined Tip TV today to discuss Greece, Europe, the US, and US stocks in particular.
Greece crisis far from over, just taking a breather
Buik began by noting briefly that the Greece situation is far from over, despite the appearance of calm in the market. He noted that while the banks are open again and there is a semblance of relative normality returning again, that time has been bought and the situation will doubtlessly flair up again.]
Goldman Sachs call sits uneasy
When pressed by Zak Mir, technical analyst about Goldman Sachs recommendation to sell US stocks and buy Europe/Japan over the next 3 months, Buik was hesitant, adding “Japan is an underwritten market” and that he has concerns over the financials of some of the domestically focused DAX and CAC constituents. Nevertheless he still sees the DAX as a buy, as it is a sentiment indicator.
Apple (NASDAQ:AAPL) set to smash expectations?
Looking to the US, Buik notes that Apple numbers are coming out today and that the market is expecting 47m iphones to have been sold, $49 bln revenue, with 29% of sales taking place in China and sales to have increased by 32%. As such shares are up 40% and Buik thinks CEO Tim Cook deserves enormous credit. However, the strength in the US dollar could be a sour point for US earnings as companies with overseas sales could see profits hit when repatriated.
Don’t expect anything more than a symbolic rate rise
Looking to the US, Buik warns George Osborne not to get too cocky after a sustained period of good economic news, and that he doesn’t expect anything more than a symbolic rate raise, if that.