Dow down 280 pts on Friday

Looks like Dow is bend on spoiling our National Day celebration. Just when everything is turning around, it came crashing down again. And why should the worry of subprime housing loan in the US concern us? This is their domestic management of housing loans and even if it does affect us or the world market, it should be of a bearable nature when funds withdraw some investments out of other markets to cover their losses back home. And some banks here may also be exposed to these loans but should not cause any panic. Even losses of a few hundred millions are not a life of death situation. Our economy is booming and the construction industry is full of works for the two IRs. These are totally detached from the US housing loan woes. So are many industries around the world. But if funds join the fun and short the market down, all the markets will go down regardless of fundamentals. It is about time that Asian bourses detach itself from the domination of Dow and take a life of its own. The Chinese market has taken on a character of its own and without too much foreign fund manipulations it is able to perform on its own merits. We will have to hope that sensibilities are not too badly affected and Asian bourses remain firm on Monday. But it will need some encouragement from analysts and fund managers to make some affirmations that the fall in Dow need not be so deadly and some sectors of he economy are totally undisturbed by the housing loans trouble.


Anonymous said...

My broker tipped me I can make big money next week by SHORTING THE PENNY STOCKS. He said the market has run for 4 years and overshot, so this is a very healthy correction. I think he is right in going with the flow that is ... to sell, sell and sell!!! then come back next year.

I think National Day is the best time to sell becos everyone is not looking or thinking the mkt will crash for it will be too late to sell when everyone realise the bloodbath that will come the weeks ahead.

My broker said I should sell, short or stay out in the next few months becos this is only just the tip of the iceberg.

Anonymous said...

who in the world is buying at these prices? of course you must sell or stay out!!

Anonymous said...

No one can timed the market; when others sell you should be buyer, and the best time to load up cheap is now.

Anonymous said...

Hope so. Brokers make money whichever way the market moves, so their advice is sell, sell, sell and then buy, buy, buy. The risk is yours. Lawyers will normally tell you that you have a 50-50 chance in most cases, but they make money whether you win or loose. The risk is yours.

redbean said...

the market will go down on monday. those speculative stocks that have gone up too high will have a lot to fall. banks will also be affected.

but look out for gems and fundamentally sound stocks. the strongest growth area today is construction, public construction and private devt. est about $30 billion contracts and about $20 bil have been awarded. and many construction stocks are still penny stocks.