“Smart Trade Group” – TraderChat – (Index Trades Riskier)…

Added: (Tue Jun 30 2009)

Pressbox (Press Release) - ‘Smart Trade Group’ on why they are focusing on individual opportunities rather than indices.

“Smart Trade Group”, the Asian-based broker, reports that it is focusing on investment in individual opportunities rather than broad-based indices.

The firm blames mounting suspicions that the much-vaunted green shoots of recovery are nothing of the kind.

A “Smart Trade Group” source said that the firm is focusing on securities that the market has mispriced in order to limit downside potential. He added that the main indices are proving too volatile and, in any case, the firm believes that many bourses are set to re-test the Mach 2009 lows as realization sets in that recovery will be a slow affair rather than an emphatic bounce.

“Smart Trade Group” said that it was folly to believe that economies which depend on consumer activity for 70% of the GDP could somehow engineer a swift recovery by “tinkering with the engine”. Any meaningful recovery will require the participation of the consumer and as most are emulating the banks and re-building their balance sheets, it is unlikely they will be returning to the stores with open wallets any time soon.