It seems that every time the market puts on an impressive performance on the upside, the next day is met by profit taking. A market that seems to be constantly paddling upstream is never any fun. Of course, the reason's for this manic behavior is very simple; oil prices and fears of inflation. Well there is no need to fear inflation, you and I have been feeling it for months.
The catalyst for a meaningful rally seems to be right around the corner. I know I'm beginning to sound like a broken record, but the table is set for one more impressive show to the upside.
On the stock side, a few weeks ago I told you that I was keeping my eye on Anheuser Busch (BUD). Well, apparently I wasn't the only one, so was Warren Buffett. On Thursday, BUD announced that Buffett's Berkshire Hathaway had bought shares in the company. BUD stock jumped 7% in one day on the news. Of course, loyal Americans and Buffett followers probably bought shares of BUD as well.
Today, analysts from UBS and JPM downgraded the stock. JPM downgraded the shares to neutral, and UBS went to a reduce rating on the stock. Since UBS and JP Morgan were part of the $1.4 billion dollar stock fraud settlement, I put no credibily on any of analyst's opinions. I know I shouldn't paint all analysts at these firm's with a broad brush, but until someone in charge of the investment banking departments or executives go to prison, I will remain skeptical. In any event, I want to buy BUD around $45-$46.
