I was supposed to continue my sharing titled “Should I Buy S.jpg)
tock Now”. And I did. I was about to finish my write-up (on MS Words) last Sunday and I was just halfway through in compiling basic data on REITs. However, I could not finish (and post) it because there is more bad news pounding all pointing towards US recession. Reported in Business Times on Monday:
“The market's fragility was on display last Friday, as the corporate news combined with more troubling economic data - the Chicago purchasing managers' index came in at 44.5, indicating the most severe contraction of the manufacturing sector in the Midwest since December 2001 - to send the Dow Jones Industrials down 315.79 points, or 2.5 per cent, to 12,266.39. The S&P 500 sank 37.05 points, or 2.7 per cent, to 1,330.63, while the Nasdaq shed 60.09 points, or 2.6 per cent, to 2,271.48………”
And we also have the oil price striking at historical high. The New York's oil futures for delivery in April surged to US$103.51 per barrel, above the previous record of US$103.05 on Friday. Is that all? No. The US dollar continued to weaken setting yet another historical low. Here in Singapore, current exchange rate with US dollar is something never seen before – S$1.393/US$1. The good news for us is that it is going to be cheaper to have a holiday in US. Weak US dollar and rising oil price propelled gold price closer to the US$1,000 an ounce mark on Monday
Is that all? No, damn!!! This morning, while I was onboard the bus to my office, I saw my mentor Mr. Warren Buffett delivering a message on the TV Mobile. He believed that the US is already in a recession. World-renowned investment guru delivering such a speech is just going to make the US recession becoming a self-fulfilled prophesy.
And the best thing is that I share the same view. Personally, I also believe that US recession had already started. The full impact will be felt soon, like in next quarter. As such, I really can’t continue writing on other possible (hidden) opportunities in equity investment. This is because if the US economy goes down, all the exporting countries will go
down too and the relevant stock (or global) markets will crash like tin can. Thus no matter which company you buy during this period will only ensure that you sit on hefty unrealized losses.
To be fair to my friends reading my blog, I have to advise all to avoid the stock market for the short to medium term. And how long is this going to take? Unfortunately, nobody knows. Having said that, from now onwards, my sharing on stock investment or evaluation will be very limited until the situation turnaround. I will write more on economic issues and financial planning, which is more relevant during bad times.
Good luck!
.jpg)
tock Now”. And I did. I was about to finish my write-up (on MS Words) last Sunday and I was just halfway through in compiling basic data on REITs. However, I could not finish (and post) it because there is more bad news pounding all pointing towards US recession. Reported in Business Times on Monday:“The market's fragility was on display last Friday, as the corporate news combined with more troubling economic data - the Chicago purchasing managers' index came in at 44.5, indicating the most severe contraction of the manufacturing sector in the Midwest since December 2001 - to send the Dow Jones Industrials down 315.79 points, or 2.5 per cent, to 12,266.39. The S&P 500 sank 37.05 points, or 2.7 per cent, to 1,330.63, while the Nasdaq shed 60.09 points, or 2.6 per cent, to 2,271.48………”
And we also have the oil price striking at historical high. The New York's oil futures for delivery in April surged to US$103.51 per barrel, above the previous record of US$103.05 on Friday. Is that all? No. The US dollar continued to weaken setting yet another historical low. Here in Singapore, current exchange rate with US dollar is something never seen before – S$1.393/US$1. The good news for us is that it is going to be cheaper to have a holiday in US. Weak US dollar and rising oil price propelled gold price closer to the US$1,000 an ounce mark on Monday
Is that all? No, damn!!! This morning, while I was onboard the bus to my office, I saw my mentor Mr. Warren Buffett delivering a message on the TV Mobile. He believed that the US is already in a recession. World-renowned investment guru delivering such a speech is just going to make the US recession becoming a self-fulfilled prophesy.
And the best thing is that I share the same view. Personally, I also believe that US recession had already started. The full impact will be felt soon, like in next quarter. As such, I really can’t continue writing on other possible (hidden) opportunities in equity investment. This is because if the US economy goes down, all the exporting countries will go
down too and the relevant stock (or global) markets will crash like tin can. Thus no matter which company you buy during this period will only ensure that you sit on hefty unrealized losses.To be fair to my friends reading my blog, I have to advise all to avoid the stock market for the short to medium term. And how long is this going to take? Unfortunately, nobody knows. Having said that, from now onwards, my sharing on stock investment or evaluation will be very limited until the situation turnaround. I will write more on economic issues and financial planning, which is more relevant during bad times.
Good luck!
