Replies to post #8668 on China MediaExpress Holdings, Inc. (fka CCME)

[Headley Lamar]

I don't necessarily see an ugly January for US stocks, but I do think that we will some curtailment and we will see institutions coming off of a very good 2010 with a more pre-recessionary risk appetite, which would have them hunting for more international value plays.

[GumSaiLay]

I think what he means by weak is "less strong". Still an upward move in us markets but with less opportunities for spectacular returns.

[tiesto]

The Fed NEEDS the market to stay up because inflation is creeping in. Look at gold prices and think about QE. The market must inflate to keep up with inflation and make people feel like they have more money. So personally I don't see the market tanking, although it you look at it from every other fundamental perspective it should tank.

[value1008]

TraderFan, you wrote, in reply to Headley's comment about a sector rotation into CGS whenever USA smallcaps lose steam:
"But that prediction goes totally against all we experienced in the last 18 months. Whenever there was overall market weakness in the US there was severe market weakness in our space. Anybody here thinks we could get a very ugly january in the overall markets in the US?"

A major factor that's different, imo, is that a lot of money rushed out of most equities (save for blue chips and divi payers) into bonds when the markets looked scary earlier in 2010. But that bond play for 2011 doesn't look good at all.

So i think a lot of big money, scanning around for possible robust gains in 2011, will look at the one major sector that did not enjoy big gains in latter 2010 (when pretty much everything else ran up), and that's the CGS space. Herein, they'll be looking for "best of breed," and all they have to do is look to IBD's ranking of the this particular "commercial services" space to see CCME as #1 out of 34 global stocks in this space.