Cover of MoneyWeek magazine issue no 488

The best of America

28 May 2010 / Issue 488

Nine US stocks to buy now

PLUS:

  • Investors are right to panic
  • Cashing in on information overload
  • How to prepare for China's hard landing

Excerpt

Prepare for the end game

There’s “just no good news out there”, said one trader this week as global stockmarkets tumbled. We’d probably agree.

But that’s not what he’d have said a few weeks ago if Britain had reported that first-quarter GDP had been revised up from 0.2% to 0.3%, as it did this week. Back then, he’d have said that the numbers proved the recovery was on course, and he’d have headed for his desk to buy more shares in banks and retailers.

The point? That the market mood swings very quickly. Hugh Hendry, who I interview this week, puts it well when he says that for a bull market to keep running, the market has to be feeling “forgiving” – it has to ignore bad news and seek out good. That was just about possible until a few weeks ago.

Even as the Greek crisis kicked off, investors took heart from the size of the European bail-outs. We even tried to find a silver lining ourselves – hoping quantitative easing might give Europe’s markets a temporary boost, despite the grim state of the continent’s finances. But there is no way to avoid the bad news now.

• Read the full editor’s letter here:
Prepare for the end game

Also in this issue:

From the editor: Prepare for the end game
News: Crisis enters a new phase
News: America turns up the heat on BP
Markets: The return of the recession
Markets: China heads for a hard landing – and a trade war
Markets: Europe: the subprime continent
Markets: Expect further price rises for silver
Sector: ‘Snorage’ is a dream ticket to profits
Share tip of the week: Well-placed telecoms giant
Turkey of the week: Defensive tobacconist
Gamble of the week: Niche pub-servicing firm
Strategy: Beware of the coming tax hike
Personal view: Diversify to defend your wealth
Briefing: The government’s school reforms
City view: New ECB president faces Herculean task
Personal finance: How new rules will affect pensions
Personal finance: Tax advice of the week: Gift your estate
Funds: How to play currencies with ETCs
Fund of the week: Buying tomorrow’s giants today
Cover story: Nine American stocks to snap up now
The Merryn Somerset Webb interview: Hugh Hendry: Forget China and prepare for hyperinflation
Travel: Where to stay in St Tropez
Toys: The fastest school run in the world
Wine: A top quality rosé
Last word: To get rich is glorious