Got shares, stuck on my portfiolio and am stuck with a lot of paper value loss
Cut loss and now waiting to stay invested
Sold everything on the high and out
what else is new? sub prime again
Last edited by raincool2005; 24th October 2007 at 03:58 PM.
STI continues to rally. Up 70++ points today.
So many uncles & aunties are making money.
Good luck to those who are pessimistic about the market.
Stay away from the market if you are not invested and don't have a buffer for losses, PE ratios for Singapore stocks are relatively higher than the region, save for Hong Kong and China where the PE ratios are at stratospheric levels. In other words, the prices are expensive.
I remember the Tech craze, this is similar.
Last edited by raincool2005; 27th October 2007 at 12:26 PM.
US markets up again on expectations Fed will cut interest rates.
Wall Street banks on another rate cut
Ben Bernanke and the Federal Reserve will decide on Halloween whether to lower interest rates again. Investors are betting on a quarter-point cut.
The bull run continue!
Oil breaches US$95 a barrel in Asian trade
Posted: 01 November 2007 1010 hrs
SINGAPORE: Oil prices scaled record highs of more than 95 dollars a barrel in Asian trade on Thursday after the Federal Reserve lowered interest rates and following news of a surprise decline in US crude stocks.
New York's main futures contract, light sweet crude for delivery in December, was trading at 95.35 dollars a barrel, up 82 cents from its close of 94.53 dollars a barrel in US trades, and smashing Wednesday's record of 94.74 dollars.
The New York contract earlier surged to an all-time intraday summit of 95.80 dollars.
Brent North Sea crude for December delivery also erased the previous day's intraday high of 90.94 dollars to trade at 91.10 dollars.
"The increase in oil prices was driven by the release of the US Energy Information Administration's Weekly Petroleum Status report, which showed a large decline in US crude oil inventories," Australia's Commonwealth Bank said.
Oil prices, which had earlier slumped below 90 dollars on Wednesday, staged a blistering rally after the Federal Reserve cut key US interest rates by a quarter of a percentage point to 4.50 percent.
The cut is targeted to boost domestic consumption in the world's biggest economy and cushion the impact of a crisis in the US sub-prime mortgage housing market which has been rocked by defaults. A healthy US economy prompts higher demand for oil.
Oil prices also rose after the US Department of Energy's (DoE) weekly snapshot of energy reserves showed that crude inventories tumbled by 3.9 million barrels to stand at 312.7 million barrels in the week ended October 26.
That shocked the market because consensus forecasts had been for a gain of 400,000 barrels in the reserves of the world's biggest energy consumer and underscored a tight supply situation.
Subprime has only affected companies Q3 profits at most. Going forward, they will turn black.
Looking at macro perspective, U.S. economy is still growing but moderately. There is no clear sign or siginificant indicator pointing the U.S. is going into recession.
The power of the media and analysts 'talking' that made investors 'nervous' so that they will sell their stocks.
Back at home, MAS has just announced the quarterly review, pointing that Singapore will achieve 7% GDP growth. Unemployment fell to the lowest in 10 years.
As for China stocks bubble, it will not burst in the near term. Those who are going to short china stocks will all be killed in the near term. Go and figure out why the bubble can sustain in the near term.
Frasers and Neave ! do u all notice its bullish trend ?
Last edited by raincool2005; 1st November 2007 at 05:19 PM.
There are people who think that the high valuations especially in China can be justified because companies are making money, unlike the dot com companies where most made little to no profits. However, paying a lot (well over 50 times price earnings ratio) of money today for profits from tomorrow, and made worse by a closed financial system where investors can only buy stocks in China and not invest outside creates a very unstable stock market that trades at artifically high levels.
Once the profits starts to level, and we are not even talking about losses, we'll start to see investors exiting Chinese stocks because perceptions about valuations will change. It starts with a trickle, investors start to lock into their profits, and then for no explanation, it becomes a flood. Financial markets often crash with little to no warning, although the signs are there well before they occur. This happens even when the global economy is in reasonably good shape, simply because of the herd mentality. When the majority starts to think otherwise, it happens. Read the papers, read and observe what people say, and who they are. If the big shots say 'overvalued' it means they are ready to make an exit. If enough of such people express the same opinions, it will happen.
Last edited by Parchiao; 1st November 2007 at 10:24 PM.
There is always some people who are pessimistic. That's life.