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The cause of mkt sell down

Thanks...  but please don't call me si fu .... I'm inexperienced and still learning. I have been wrong many times and I just like to share ideas on the forum. 

This crisis is the worst in living memory and we're all struggling for answers.

One thing for sure - don't go into long positions right now. You will be catching a falling knife and the market is clearly on a downtrend. 

 

She is very zhun ......always take her opinion seriously and use them for references...

jasonfaxingliu      ( Date: 09-Oct-2008 12:37) Posted: yes indeed singaporegal is a si fu... so when will be the best time to cash in the stock market? may be mid 2009 or will STI reaches 1800?

 

I think the question asked by buysell is if everyone boycott the market, no one wants to buy/sell, it will come to standstill or not..

well, my opinion is... if there is someone out doing contra, but could not cover the position OR buy to hold for long term, the stock price will be go down as to cut loss.(sell low).

Just imagine another scenario where people keep on buying a stock and have holding power, I don;t think the stock price will go down tremendously. Even for profit-taking , as buyers > sellers.

My 2 cents worth of opinion

 

 

 

yes indeed singaporegal is a si fu... so when will be the best time to cash in the stock market? may be mid 2009 or will STI reaches 1800?

 

the lack of trust led to the destruction of the lightly regulated shadow banking system that allowed a 30x multiplier effect in money supply creation.

 Even if TRUST is regained within the normal banking system -  the shadow banking system and its multiplier effect is still shut down. The mechanics of the rebuilting of the replacement money supply & velocity will take years to do - and the exact source and composition of it's replacement is still up in the air.

Saying "TRUST" & calling it "Crisis of Confidence" is too "motherhood statement-ish" and unhelpful to thinking about a path way to resolution.

Yes - taking the triage of token confidence-boosting acts in the normal banking system to stabilize it is important but real confidence can only be had with full use of the emergency toolkit to top-up fluids & maintain blood pressure of patient.

 

In what ways can the Trust be regain . Unless the govt guarantee on that? It should helps but  it would be state owned, which might not be a bad thing.

 

singaporegal      ( Date: 09-Oct-2008 10:34) Posted: IMHO, the crisis is predominately a crisis of confidence among banks.  Coordinated rate cuts may help a little, but I don't think it solves the underlying problem of lack of trust.

 

dear singaporegal.. you're very wise and insightful, as always :)

singaporegal      ( Date: 09-Oct-2008 10:34) Posted: IMHO, the crisis is predominately a crisis of confidence among banks.  Coordinated rate cuts may help a little, but I don't think it solves the underlying problem of lack of trust.

 

IMHO, the crisis is predominately a crisis of confidence among banks. 

Coordinated rate cuts may help a little, but I don't think it solves the underlying problem of lack of trust. 

 

does it means they are formidable, manipulate pricing around the globe without any resistance?

In another scenario, assuming every retail investor boycott the mkt & nobody buy, wouldn't the mkt come to a standstill? when would the selling stop, when every stock is zero value?

question is what is needed to do for a mkt reversal? 

 

Traders around the world do take cue from each other to trade, especially information is almost within reach instantaneously nowadays. Funds can be moved in and out of any market from different countries with a click on the mouse. 

The world is getting smaller. Trading opportunities are getting more. 

 

do traders around the world take cue from each other to buy or sell? If not, aren't they worried they might be in dire state if  another BB or BBs with substantial funds pawn them?