Alpha Investment Newsletter Sees 13% Downside in the S&P 500 Index

June 20, 2012 by · Leave a Comment
Filed under: Americas, Banking, Business, Capital Markets, World 

New York, June 20, 2012 — Note to Investors: The S&P 500 Index has recently bounced back from the correction seen in May 2012 after taking support at 1280.

While the latest FOMC communication from the US Fed does not reveal any QE3 indication in the near future, it is possible that some form of QE/LTRO may happen in Europe along with steps towards tighter fiscal management in the EU. Such an event, having only 20% probability in the near term, can move global equity markets up by 10% within a few weeks.

However, in the absence of any material policy action in the US or EU, the S&P500 can rapidly give up the gains of the recent rally from 1270 to 1360, and possibly make new lows for the year 2012 even before the US Govt can try to revive the economy and the stock markets in this election year. Therefore, investors must remain cautious. Read more

Vestas Ends 2011 With 6GW of Orders for Wind Energy Projects

https://encrypted-tbn2.google.com/images?q=tbn:ANd9GcS3smDEs4nf_sO_Y7RRi1bF4kzrhHqA0fLGsqDHWFVJRY5-bQZKHQCountries like the Ukraine, Poland, Pakistan, and Brazil have not previously been required to reduce their greenhouse gas emissions. Last month at Durban, that changed. Orders from nations like these boosted year-end wind turbine business at Danish wind giant Vestas.  The flurry of orders came a month after international climate negotiations in Durban, South Africa, delivered a surprise stipulation that every nation has agreed to, to share binding, international cuts in greenhouse gas emissions within just 8 years.

The unequal requirements of the precursor agreement, the Kyoto Accord, which cut developing nations a break, had long prevented US agreement, and its elimination has resolved a longstanding dispute that prevented international agreement on carbon reductions. Some of these formerly “developing” nations, like Brazil, are now among the world’s highest emitters of greenhouse gases. Like other European renewable energy companies that grew to world domination because Europe adopted tough Kyoto Accord rules that required that Europe use clean energy, Vestas is likely to be a beneficiary of the new agreement. Over the next eight years, all nations will need to rush to get their clean energy in time for the changed climate rules, ready or not. Read more

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