Wednesday, December 1, 2010

Stockmarket ++CrossRoad++

Where is the market heading...

In the final days of September, I penned "The Pains & Fun Of Stockmarket" amongst which read '... Lightening up seems an ideal choice (on the upswing) ... Cyclically, quarterly low is expected in October.' Guess, we have seen it all!

A flip through of some major markets/ charts and most show we are at the crossroads including possible 'Head & Shoulders pattern', 'a small Wave C or a Wave 3'...  an impending downside-bias? ?

What's keeping the markets up?
Hot money and self-denial; or what I call the "Hope Syndrome".
Profit in hand is worth zillion$ in the market; I am bopeful but I rather be safe

What you find under the stars...

In year 2000, there were 6.1bil people in the World; now its 6.9bil - demand, multiplier and growth?
There are three times more billionaires today than there were 10 years ago - the newfound rich and the rich gets richer
Similarly, there are more under-nourished, more unemployed, more poverty sprinkled around the Gobe - the poor gets poorer, the struggling class

The World will never be equal

When the financial crisis hit the West, as in most 'club deals', saved were those who belong to the 'club'
The big institutions borrow to pay fellow lenders who underwrite their fresh loans; by extension debts were used as collaterals; and the music continues... 

General Motors (GM) rose from the dead, AIA was rescuscitated and Citibank limped back to recovery; Freddie Mac & Fannie Mae melted into oblivion

USA prints enough money to fill gaps left behind by the financial earthquake - if money can solve problems, its no longer a problem! 

U.S. NATIONAL DEBT CLOCK - shows The Outstanding Public Debt as of 01 Dec 2010 at 02:49:23 AM GMT is: US$13,795,262,233,519.30 

China's reserves hits 3 trillion; Japan's reserves passed 1 trillion
China is fighting inflation whereas Japan is struggling in deflation
Singapore's growth of 15% will taper down to 5% next year

If printing money can steer the World out of depression, the term 'banana' currency would not have been conceived
The value of money is not in the number of zeroes after One; its the confidence and its purchasing power - read the following - 100 trillion Zimbabwean dollar banknote (1014 dollars), equal to 1027 pre-2006 dollars

If you are deep in the plus/profit, take some, if not all
If you are in the red and living with borrowed money, be forewarned and be prepared

China is a developing nation, poor by per capita but rich in absolute dollars
US is a developed nation, rich by per capita but living on borrowed dollars

If Wall Street is the lighthouse of Capitalism, by extension equity markets
The tides have changed

When you make your fortune, I be glad to have a free beer...
And kindly donate to the less fortunate...and I am one

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