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DOW

The overall market is quite volatile. The FED & Bush have stressed that they will not use monetary policies to bail the US Sub Prime Mortgages.


Stresses in the financial system need to correct the systemic flaws of greed and easy credit.
Overall, I would see the market correct itself over the next couple of months.
Financial sectors will be hit the most.

China Inflation situations have gotten worse. The government will need to reign in the run away price increase.
It is the same in India. Valuation has gotten high.
The same can be said of Spore. You see the run away property market. Many people are priced out of the current
property market. Inflation has gone up about 2%.

Inflation adds stress to the economic growth.
UK Sub prime has not been factored in yet.

It is the same with the YEN carry trade issues. Emerging markets, Aust, NZ and Europe borrowing on cheap YEN will have to pay the price later on.

These issues need to be resolved soon. Anyone could be a potential archilles heels for world growth.

 

Scotty... :)


Does the Dow 3-months chart show a bull market in the making... amid the currrent sinister background?

Or a probable further weakening of the market/s?

Dow daily up and down swings alternately create euphoria and fear...

But appreciating the overall picture is more important than a reactive opened-mouth awe whenever there is a rising day in the Dow. Why not look at the nett loss/gain instead?...

 

If stock mkt is so predictable that every 10 years will crash once especially in October, then there will not be any investors out there in October 2007, where to find a crash when the $$ mkt is zero! Should be ok from now, with FED and BUSH backing the economy plus a boost from Election next year, we should see healthy gain after 18 Sept when FED cut the disc rate (if that happens).

 

Sometime we do sway by all these...esp..see this

http://www.youtube.com/watch?v=6vEPjBeKTh0

It just got me worry...what you ppl think??your generous feedback..to clam my nerve pls..

 

What bear? The Dow went up 119 points last night. I think it is recovering.

 

Yammm.. Seng!



Prepare for severe Bear.                                                           Yamm.. Seng..!

 

arise2557..no u cant use your cpf...there is a fund...United Gold and General fund under UOB..this one will do well...but if u want more than buy Goldcorp Inc..Kinross..listed on NYSE...ask broker...but brokerage will be expensive,,i dont know cause i invest thro someone in California..but to be assure...dont just listen to what i said,seechart and u can then be confident...most of my stock return me 500 % ave to date.,,honest.

As for rate cut ...i think a bull is in the making...they got no option...election next year..they will never allow stock to crash...and further it involve housing espeially..I believe real one will come later after election..

 

BBs

 

Prepare for severe Bear.

 

 

Today's S.T :

But the president also said it was not the government's job to bail out 'speculators', a remark that briefly caused stocks to pare gains.

 

Prepare for severe Bear.

 

CNN :


"No rate cut is imminent

Bernanke pointed out that it not the Fed''s responsibility to protect lenders and investors from the consequences of their financial decisions"

Ang Mo only come in again if mkt is in big turmoil

If gain or drop abit, he is not going to help

 

Hi pls tell me how to buy gold.  Can I use my CPF?

 

Look like the fed will have to cut rate at least 4 to 5 times..this will weaken the dollar  and benefit gold...buy gold stock..since 2000..gold stock performance in the ratio of 1:3 ...ie..for every one time increase in the physical gold px...gold stock up 3 times!!!buy now while still cheap.....the weak dollar and the fund rate cut is eventual event for sure...

 

Gold px up,anticipating the weakening of the dollar due to fund rate cut..thus setup antoher crises..waitng on the side line...the collapse of the $ will be even worse..hope China and Japan keep buying and support the $...as for us ...trade and thread carefully with an eye on the $ performance..

http://www.chartsrus.com/chart.php?image=http://www.sharelynx.com/chartstemp/free/chartindCRUvoi.php?ticker=FUTDX

 

 

Dow Chart

Which way it will go next is anyone's guess! 

 

 

 

(RTTNews) - The Federal Reserve will act as needed to prevent the recent problems in the credit markets from having a severely negative impact on the overall economy, according to remarks by Federal Reserve Chairman Ben Bernanke at the Kansas City Fed''s Economic Symposium in Jackson Hole, Wyoming on Friday. While Bernanke did not specifically indicate that the Federal Open Market Committee would lower its target for the federal funds rate, he said that the committee would "act as needed to limit the adverse effects on the broader economy that may arise from the disruptions in financial markets."

Many analysts have been predicting that the FOMC will lower the federal funds rate target at its September 18th meeting, if not before, after the committee decided to cut its discount rate on loans to banks earlier this month.In his prepared remarks, Bernanke noted that the purpose of cutting the discount rate was to assure depositories of the ready availability of a backstop source of liquidity. "Even if banks find that borrowing from the discount window is not immediately necessary," Bernanke said, "the knowledge that liquidity is available should help alleviate concerns about funding that might otherwise constrain depositories from extending credit or making markets."

Bernanke added that the Fed will take additional actions as needed to provide liquidity and promote the orderly functioning of markets.W hile Bernanke pointed out that it not the Fed''s responsibility to protect lenders and investors from the consequences of their financial decisions, he said that the broad economic effects that result from developments in the financial markets must be taken into account when determining policy.Additionally, Bernanke''s remarks are likely to lead to an increased focus on upcoming economic data, as he said that economic data from the past months or quarters may be less useful than usual in light of the recent financial developments. "Consequently," Bernanke said, "we will pay particularly close attention to the timeliest indicators, as well as information gleaned from our business and banking contacts around the country."

Earlier this week, the Fed released the minutes of its last scheduled policy meeting. While that interest rate decision, in which the Fed once again left its benchmark rate unchanged, pre-dated the credit crisis, the minutes showed the Fed remained worried about inflation. Policymakers acknowledged the possibility of a deterioration in financial conditions, but they still identified inflation as the most significant policy concern. Given that the Fed is looking for signs of sustained tame inflation, data released Friday morning could help in September''s interest rate decision.

 

Bush - Not a Bailout.

Bush - Government will offer Foreclosure-Avoidance Proposal.

Bush - Government will "Modernize" FHA.

Bush - Government Role in Helping homeowners is "Limited".

Bush - Congress Should Pass FHA Modernization Legislation.

Bush - There have been "Excesses in lending industry"

President Bush - US Markets in "Period of Transition"

 

CNN :

MARKET SNAPSHOT: U.S. Stocks Cut Gains After Bernanke Talk

No rate cut is imminent