Companhia Sanea (SBS)

[flatlander_60048]

In a perverse way the Fed holding rates may be a short term negative for value stocks including SBS. A couple Nobel Laureate economists from the Univ of Chicago (Fama and French) showed that value stocks (of which SBS is most definitely) perform best when rates begin to rise. Seymour who follows Brazil closely said that the EWZ was likely to see another down leg and bottom in October. He had been looking for it to rally this week if the Fed hiked.


I'll probably use any strength tomorrow (due to temporary dollar weakening or otherwise) to either trade some shares or sell some call contracts. Hate to say it but if they are right we could revisit upper $3 range again in the next few weeks.

Regards

FL