You can increase the probability of making money through technical & fundamental analysis, topped-up with plentiful of commonsense...
Stockmarkets move in cycles. Guesswork & gut-feel rules; Everyone wants to make money but few spend time to do some homework.
Chinese companies that were listed in the US had brought hopes and hype, once upon a time, but are becoming nightmares - Puda Coal, Longtop Financial Technologies Ltd, China MediaExpress. Singapore and Hong Kong has a fair share too. From time to time, local companies fail too.
Capital markets are greased by liquidity as much as by hot money.
Of late, there were little, or no, leads to drive stockmarkets in either direction. Most were hopeful but cautious.
The shadows of US slowdown and deficit, Euro debt issues, Chinese banks overexposure to loans, the reining in of property markets in China, Hong Kong and Singapore, unemployment and underemployment issues globally, the Middle-East political uncertainties - you name it, you find it...
Guess, stockmarkets have 'overlived' its rebound from the 2008/9 financial crisis; henceforth challenging.. However, this is not fatalistic. It is NOT unexpected for the markets to experience a spike down (worse than expected numbers, debts/political failures, gamesmanship, others) anytime soon. By extension, a re-rating shall follow.
The Game is OLD but the Players are NEW.
A total lunar eclipse will take place on June 15, 2011; will this be the time honored turning point of the market? I will NOT be surprised!
Hot money must find safe haven; have fun wagering
A Fool & His Money Will Soon Part