Another blitzkrieg?Sub-prime can never die. It returns like Freddie. So expect price beheading this morning especially as the weak and panicky run for cover.
The worrisome thing;if it should happen, is contagion effect-which will possibly bring down the CI to Aug 17 level at the worse. The DBS connection is not good. It spells trouble because sub-prime is like religion-the veracity of it is anybody's guess. The elemental sub-prime has now been packaged and repackaged too many times that its underlying alloy strength is now questionable.
Dow Jones, the sifu leader of world stock market took a turn for the worse, dropping by a 280 points fall. Downgrades on financial stocks by rating agencies caused the loss of confidence and investors ran for cover.
I think our markets are going to be hammered until they cannot stammer. Nikkei will see a fall as yen-denominated business will take a kick in the groin. More yen unwinding will put more pressure on the yen and forced the hands of investment agencies to unwind forcing down US dollars,euros, the NZ and the Aud $. I foresee a disorderly financial market - a unnerving turmoil of tsunami size.
The picture above is the Hubble capture of a nebula known as the sombrero. Can it give protection and cover to panicky investors today?
So let us watch the second chapter is Sub-prime-The Return of Freddie.
Heartsong
Dow Jones, the sifu leader of world stock market took a turn for the worse, dropping by a 280 points fall. Downgrades on financial stocks by rating agencies caused the loss of confidence and investors ran for cover.
I think our markets are going to be hammered until they cannot stammer. Nikkei will see a fall as yen-denominated business will take a kick in the groin. More yen unwinding will put more pressure on the yen and forced the hands of investment agencies to unwind forcing down US dollars,euros, the NZ and the Aud $. I foresee a disorderly financial market - a unnerving turmoil of tsunami size.
The picture above is the Hubble capture of a nebula known as the sombrero. Can it give protection and cover to panicky investors today?
So let us watch the second chapter is Sub-prime-The Return of Freddie.
Heartsong
2 comments:
Unc, your analyses are mouthwatering! You make stocks look sexy! This is too good for a blog, Unc. Consider pitching your ground reports to the papers, please.
Buns,
Thanks again for the encouragement. At the moment, I am just testing my sixth sense and fleshing out my writing styles on the blog. The shadow portfolio will help me when stocks fell like on Aug 17.
As you can see BJ Toto is a cornered stock. Welli is going to be that dark horse that will bring in the $$$ if you have the patience to wait it out.
JAKS is that resilient stock that would not go down in good and bad times.
RCE is a consumption stock that will ride on the propensity to consume of civil servants.So in a way it is also a good defensive stock.
I think the market is going into rumba station again. Then the punters will leave the scene and make Bursa a graveyard as it was before February 2006.
PC
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