Monday, March 23, 2009

Stockmarket - The Uneasy Calm

Stockmarket - The Uneasy Calm
Peace Of Mind 

The eerie silence and uneasy comfort of the market is deafening; are we out of the woods yet? Stockmarkets worldwide have rebounded from their lows amidst rescue plans and injection of desperately needed funds to keep the financial system afloat. But, this is likely to be a false dawn, at least, in the immediate few months!

For cash rich investors and those who needs to deploy their funds, its ideal to 'buy on weakness'; you will be right if you can ride out the crisis and time is on your side (a broken clock is right twice a day!). On the flip side, any need to reallize and crystalize cash to meet untimely demand may cause colossal damage. We can't time the market but we can take calculated risks.

What's the point of chasing after US$165mil (@ AIG) - its no small beer though - if US$700bil Troubled Asset Relief Program (TARP) is expended with no respite in sight? What about the possibility of bankruptcy in the East European economy to the tune of US$250bil? Is South Korea tottering into the arms of IMF? And the sabre rattling North Korea is not helping the situation either. 

Protectionism has also reared its ugly head in various countries in different guises to the detriment of free trades.

Typically, after sharp drops in the stockmarket, falls in property prices is imminent. Will this time be any different? I guess not! Banks are averse to extending loans to property-related borrowing as the burns of sub-prime is as sizzling hot as the midday sun. Negative equity may not be here yet but when it hits home, recovery will be a long drawn affair not unlike the 1997/98 Asian Financial Crisis but definitely deeper... my guess is, we are trawling through uncharted water and probably into the eye of the storm.

I hope I am wrong ... for when I am right, few will be spared and there will be more suffering - a scene I do not wish to be witnessed to!    

What I want is a Peace of Mind; eat enough, sleep well and stays healthy. Tomorrow will come but live your/the best today. 

Without frustration and uncertainty, you will not realize obstacles do help built a superior you; we grow out of overcoming challenges where boys are separated from Man. 

But, few make it to the grade.

Best regards & God bless

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