Subprime issue in the financial markets and your shares

Who suffered from recent meltdown?


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USM

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Apr 25, 2002
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#2
There is no need tp panic. Such sell-down is an opportunity for you to pick up quality stocks at dirt cheap prices.

Just like 911 incident, market will pick up in no time as the fundamentals are still sound. Look at Singapore economy. :thumbsup:

Many fund house/security/investment firms are shorting the markets now. They may lose on the stock prices but win in other instrutments such as futures, etc. They are the big fishes who will always win no matter bull or bear.
 

azul123

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Dec 4, 2004
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#3
I think some people are taking this as an opportunity to buy at really good prices. Someone once told me, the trick is to continually invest... of course pick those fundamentally sound companies that have good businesses and track.

../azul123
 

raincool2005

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Sep 10, 2005
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#4
Make sure u invest in fundamentally sound stocks !

for example, i just picked up some ST engg last friday selldown. ;)
 

ricohflex

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Feb 24, 2005
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#5
You may like to read the details of the 1929 crash.
When the small crash came, some people actually went in to buy large amounts of stock, thinking they are picking up good bargains.
Then the big crash came a very short while later and these people then knew they had wiped themselves out.
 

raincool2005

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#6
You may like to read the details of the 1929 crash.
When the small crash came, some people actually went in to buy large amounts of stock, thinking they are picking up good bargains.
Then the big crash came a very short while later and these people then knew they had wiped themselves out.
right now, it maybe a possibility as more info is revealed about the subprime . One thing for sure, great damage is done and but medical aid is better than last few decades.

as for now, the trading plan is simple ; sell into strength whenever it is possible. STI index is looking down towards 2800-2900. Market is dropping more than recovering in rebounds. Stability is not yet seen.

Crash ?? i dun think so as the world finanical systems are very much robust and stronger after Asian Financial Crisis and 911. Instead, a mild recession maybe possible at year end. Remember what Greenspan said in Feb 2007 ? He maybe already saw it and hinted in his words
 

raincool2005

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#7
There is no need tp panic. Such sell-down is an opportunity for you to pick up quality stocks at dirt cheap prices.

Just like 911 incident, market will pick up in no time as the fundamentals are still sound. Look at Singapore economy. :thumbsup:

Many fund house/security/investment firms are shorting the markets now. They may lose on the stock prices but win in other instrutments such as futures, etc. They are the big fishes who will always win no matter bull or bear.
yes, Singapore's economy is sound but dependent on world trade esp.. USA. They fall sick, we fall sick also. That is why when the subprime issue appeared, our market drop as funds sold off their stakes.
 

nyxx88

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Nov 17, 2004
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yes, Singapore's economy is sound but dependent on world trade esp.. USA. They fall sick, we fall sick also. That is why when the subprime issue appeared, our market drop as funds sold off their stakes.
Yeah... when he mentioned irrational exuberance...
 

raincool2005

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Yeah... when he mentioned irrational exuberance...
in fact, when STI is around 3600, some funds already said our sg stocks are expensive.

if u had chance to see the realtime trading for last 2 weeks, u will see their power of selling, no one can defeat their warchest, they had millions after millions to sell.
 

raincool2005

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#10
the victims of subprime problem are mainly the banks around the world, they invested in US property market.

as for our local banks, their invested amount is small, but as i said when USA catches a flu, so is Singapore.

:sweat:
 

Beachboy

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Feb 5, 2004
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#11
STI will go down to 2800point that its the bottom before it rebounce, if you guy want to invest wait STI reach that level then buy.

if you still have stock take this opportunity to sell on Monday.
 

seanlim

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Oct 28, 2005
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#12
:) paper loss but not stuck.
anyway, kudos to those who bought just nice before the feds stepped in.
pockets no BIG BIG:thumbsup::thumbsup::thumbsup:
 

Beachboy

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Feb 5, 2004
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#14
:) paper loss but not stuck.
anyway, kudos to those who bought just nice before the feds stepped in.
pockets no BIG BIG:thumbsup::thumbsup::thumbsup:
more to come, many mortage lenders closing down, filling for bankup, cutting staff and ect. will be expecting more bad news come out next week.

suggest to take profit or cut loss on Monday....
 

eyes

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Nov 15, 2003
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#15
Goerge Soros was absolutely right when he was in Singapore last year on a special invitational senminar when he spoked about the US property and mortage in bubble will burst soon affecting other economies. But then the economy was recovering strongly and the local media and experts booed his remarks as speculative rumour for personal advantage. I guess he's making a few billion bucks again in this technical downturn. :bsmilie:
 

USM

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#16
Goerge Soros was absolutely right when he was in Singapore last year on a special invitational senminar when he spoked about the US property and mortage in bubble will burst soon affecting other economies. But then the economy was recovering strongly and the local media and experts booed his remarks as speculative rumour for personal advantage. I guess he's making a few billion bucks again in this technical downturn. :bsmilie:
Yeah man! Goerge Soros - one of the kings of hedge funds. :thumbsup: They will always make money no matter which direction the market turns. Remember, most laymen will only trade stocks and shares, but these people have other options sich as futures, etc.
 

Parchiao

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#17
I remember that someone from our govt, can't remember who, mentioned that there will be a correction to the financial markets way before the sub-prime news hit the markets, and warned us all. MM Lee just mentioned that the markets will continue to be turbulent for weeks or even a couple of months before the economy continues to grow because of India and China. Without going through any research, I will recommend to those of you to take their words seriously.

Seperately, when the fall out of the sub-prime news subsides, watch out for the property bubble in the UK. At the same time, watch out for the speculative bubble in China and India stocks. Difference between China and India is that China has heavily invested in US Treasuries, any problems with China can mean that they may sell US Treasuries heavily to prop up their currency and economy. Of course, all this is simplistic assumptions, but I am just suggesting possibilities.

So we now have a situation of high stock prices globally, increasing inflationary pressures in the US and Europe contributing to higher interest rates and lower bond prices. If you cannot stomach too much risk, sell and stay out. If you are invested and cannot stay out, look out to switch to more defensive stocks, funds that are able to hedge against their holdings (not the speculative hedge funds that hold naked short positions) with futures or even European bonds or bond funds (relative to the risky situation of US bonds). Emerging markets offer a lot of volatility in good times and bad, compared to developed markets, as such switch to developed markets and focus on the stocks that offer viable businesses exposure for a more defensive stance.
 

raincool2005

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#18
I remember that someone from our govt, can't remember who, mentioned that there will be a correction to the financial markets way before the sub-prime news hit the markets, and warned us all. MM Lee just mentioned that the markets will continue to be turbulent for weeks or even a couple of months before the economy continues to grow because of India and China. Without going through any research, I will recommend to those of you to take their words seriously.

Seperately, when the fall out of the sub-prime news subsides, watch out for the property bubble in the UK. At the same time, watch out for the speculative bubble in China and India stocks. Difference between China and India is that China has heavily invested in US Treasuries, any problems with China can mean that they may sell US Treasuries heavily to prop up their currency and economy. Of course, all this is simplistic assumptions, but I am just suggesting possibilities.

So we now have a situation of high stock prices globally, increasing inflationary pressures in the US and Europe contributing to higher interest rates and lower bond prices. If you cannot stomach too much risk, sell and stay out. If you are invested and cannot stay out, look out to switch to more defensive stocks, funds that are able to hedge against their holdings (not the speculative hedge funds that hold naked short positions) with futures or even European bonds or bond funds (relative to the risky situation of US bonds). Emerging markets offer a lot of volatility in good times and bad, compared to developed markets, as such switch to developed markets and focus on the stocks that offer viable businesses exposure for a more defensive stance.
there's will be a rebound tomm due to Fed's cut last Friday and National Day Speech. Will see how Nikkei open first tomm morning.
 

Parchiao

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#19
Markets rebounding after Friday is a given isn't it, but a discount rate cut does not mean that the markets will recover indefinitely, it will help to ease the pressure on high interest rates in the interbank market though, so one less worry for banks and financial institutions, but not necessarily for companies looking for funding because banks and finacial institutions need to work out their risk exposure before they lend. It's a little like Indonesian companies, when the rupiah collapsed in 1997, no banks wanted to provide guarantees for trade financing activities for Indonesian companies. In this situation, banks are only less willing to lend with the current situation.

The problem now is that there is a fear of more companies and institutions coming out with news of more losses related to sub-prime lending assets. Untill all of the news and related news can be discounted by the market, it will be a rocky few weeks. If more bad news comes out, it will be months.
 

raincool2005

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#20
Markets rebounding after Friday is a given isn't it, but a discount rate cut does not mean that the markets will recover indefinitely, it will help to ease the pressure on high interest rates in the interbank market though, so one less worry for banks and financial institutions, but not necessarily for companies looking for funding because banks and finacial institutions need to work out their risk exposure before they lend. It's a little like Indonesian companies, when the rupiah collapsed in 1997, no banks wanted to provide guarantees for trade financing activities for Indonesian companies. In this situation, banks are only less willing to lend with the current situation.

The problem now is that there is a fear of more companies and institutions coming out with news of more losses related to sub-prime lending assets. Untill all of the news and related news can be discounted by the market, it will be a rocky few weeks. If more bad news comes out, it will be months.
i am wandering are the China banks hurt by the subprime meltdown.. our 3 locals banks so far so good, small amount.
 

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