Why do we say' falling in love' and not 'rising in love 'because when we fall in love we lose our rational mind and fall madly in love.
If if you fall in love with your Market Misress it is the same phenomenon-it is equally addictive and irrational - you buy high and sell low or is it buy high and sell higher or sell low and buy higher or buy low and sell lower .
I think there are more important things in life than the stock market-like being aware that you are breathing in and out and that there is suffering(dukkha) and that everything is impermanent(anicca) and understanding anatta(non self) which means that we are all interdependent.
The world of the stock market is equivalent to the buddhist realm of "hungry ghosts"
irrational pessimism now in the market even when Singapore economy is booming (goldern era as defined by our MM), and it is not logical...for those with strong holding power, it is time to accumulate good stocks (not all at once but bit by bit)...for those who have no money to hold but still want to trade, still the same old advice (follow the three rules)
Singtel, Marine, oil and gas play with solid earning can help abit to lift STI, while Three big local Banks index of 29% is more then enough to ink STI RED.
Don't worry lah. As I always said in my previous post, with turmoil comes opportunities. In chinese it is called 'wei ji'. Just pick stocks with good potential like Keppel corp when everyone is panickly selling. Wait for year end rally and your investment can reap at least 50%!
thanks for sharing. in your opinion, do you think fed will cut interest ? that'll be good to save the stock market, but this will give the dollars pressure to go down again right?
Looking forward to Monday, while the index can be down, i believe it will not be as worst as last time as the second wave ripple is generally smaller...do not be panic and be disclipine...good luck :)
market still uncertain and got to observe closely these few days (lots of spikes whether up or down)...got LOTS of CALLS from my friends (some still affected but with a reduced postion) who thank me for my advice in June...as for me not really affected by this down wave as out most position before 21st July but waiting to buy cheap good stocks...for those who are still trading my three advices are:
SAN FRANCISCO (MarketWatch) -- The mortgage crisis that's shaking capital markets could encourage the Federal Reserve to cut interest rates, economists said this week.
Problems in the subprime mortgage market have spread into other parts of the home loan market, causing the private, secondary mortgage market to freeze up. That's limiting the availability of some home loans.
The troubles have also infected the leveraged-loan and high-yield debt markets, widening corporate credit spreads and derailing financing for some leveraged buyouts.
"The central bank can do something to help alleviate all this stress," Maury Harris, chief U.S. economist at UBS AG (UBS :
UBS54.08, -1.04, -1.9%) , said in a recent interview with MarketWatch.
"Whether widening spreads are good or bad for the stock market depends on the central bank response," he added. "Spreads could come back if the Fed cuts interest rates."
UBS expects the Fed funds rate to be at 4.75% by end of 2007, down from the current 5.25%. That would help the stock market, Harris added.
If there's been a big increase in risk aversion in the market, that would worry the Fed and could prompt action, said Lou Crandall, chief economist at Wrightson ICAP, the U.S. research firm of ICAP, the world's largest inter-dealer broker.
"From the Fed's perspective, if risk perceptions change that's fine," he explained. "But if risk capacity goes down, then they'd be a little bit more worried."
"Then finally there's the implication of a big increase in risk aversion," Crandall said. "That's when everything's coming together at once and the system is most exposed."
Treasury prices rallied Friday, pushing the yield on the benchmark 10-year note down to its lowest level since mid-May. Meanwhile, high-yield corporate credit yields have jumped in recent weeks, widening spreads. That increased the cost of borrowing for companies.
Higher borrowing costs make companies more wary of committing to large, long-term investments. If businesses stop spending as much, that could dent economic growth, said Crandall.
Business investment has been one of the economic bright spots in recent months, helping to cushion the impact of subprime mortgage turmoil on consumer spending.
The U.S. economy grew at an annual rate of 3.4% in the second quarter, the fastest pace since early 2006, the Commerce Department reported recently. See full story.
Business investment increased 8.1% in the quarter, while investments in equipment and software grew at the fastest rate since the third quarter of last year. Investments in structures jumped 22.1%, the fastest pace since the second quarter of 1994.
But if borrowing costs remain higher for companies, such strength in business spending could wane, Crandall said.
"Prospects for capital spending are a lot murkier than they were earlier in July," he said. "Conditions we're experiencing right now would have a noticeable effect on economic activity if they persist."
Alistair Barr is a reporter for MarketWatch in San Francisco.
i think is difficult for bernake to cut the interst rate. with bad employment data and inflation (not so exciting), there is no reason unless the stock collapsed like year 2000, but dow has been ended like that situation now. cutting the interst rate will give a pressure to dollars, this is one for fed concern too.
wave C can bring dow to 12800, her final support. it better dont break, if correction is too big, the it will bring us into a recession and bear market for long time.
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