atans1

A week is a long time

In China, Investments on 14/01/2010 at 5:41 am

The “future’s bright” buying we saw  in the S’pore mkt in the first week of 2010 has turned to “no future” selling, since Tuesday. Looks like the penny-stock syndicates may have got their timing wrong.  Watch out for forced selling as punters ignore margin calls.

Blame the Chinese government for spooking global mkts.

To recap:

– China increased the amount banks must set aside as reserves in the clearest sign yet that the central bank is trying to tighten monetary conditions amid mounting concerns of overheating and inflation as a result of the credit boom.

– The central bank also raised interest rates modestly in the inter-bank market on Tuesday for the second time in less than a week.

Trumpets pls for my 2010 strategy: ” Look for strong balance sheets and dividends that will compensate if brokers’ optimism turn to be wrong.” http://atans1.wordpress.com/2009/12/31/investment-strategy-for-2010/

We could be going back to the future. In 1993, America discovered emerging Asian mkts. Come Jan 1994, these mkts were expected to continue flying. Then Greenspan started raising US rates.

Funds started selling and mkts went down and quiet. This time it could the emerging hegemon that causes investors and brokers to  reassess their bullishness.

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