The latest Federal Reserve report on the United States says the world's largest economy is expanding.
More Americans are getting employed, a report out on Thursday showed. But oil prices continue to hover well above US$100 (HK$780) per barrel.
Also, rising concerns about inflation is likely to trigger the start of a rate hike cycle both in Hong Kong and the United States.
So this month, stocks are likely to be volatile and directionless.
Meanwhile, many fund managers are cash-rich as valuations of local stocks remain modest.
Everyone wants to scoop up quality picks on the cheap. So, let's look once again at Xinyi Glass (0868). My readers should know this is one of my favorites.
Xinyi makes car, construction, float and solar glasses. Profits soared 103 percent year-on-year in 2010.
For no reason, the stock was dumped last Thursday, falling 8percent to HK$6.01. Apparently, some funds were selling.
Yesterday, it rose up to HK$7.40 - near a historical high. JPMorgan has a HK$9 target. Fund managers may not be always right! Dr Check and/or The Standard bear no responsibility for any investment decision made based on the views expressed in this column.
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