has to be done because US equity market is growing at a rate difficult to comprehend now. probably Bernanke's way of slowing down the bullish sentiments without inviting hyperinflation later.
Nazir razak came out with statement that hot money will eventually leave this region. That may have exacerbate today's drop. In all fairness, market here valued already. Unless US sinks further, hot money will move back. Thankfully Malaysia insulated with larger local borrowing than foreign ones. US recovery is a double edged sword. You guys better pray for china recovery soon enough. Don't see the bull coming now! :(
last mission for Bernanke is to set course for easing up on stimulus b4 he left Jan 2014. unless otherwise, v should c U.S economy to continue improve, which should benefit china, and hopefully EU can catch up second half. if not, maybe v c qe4 ;D
Market is uncertain since Obama's remark. They are assuming Bernanke will dismantle the loose monetary policy before he goes. Market, especially US, is trying to assess if the president wants somebody to jump start the economy again. For now, 2013 will be turbulent.
For those who watch the last session at Capitol Hill, would know the panel acknowledge the difficulty in Bernake last decision whilst hold the opinion to balance the moving forward to tapper with subjected info. What this means is, the current indicator of markets are giving diverse info which do not converge. So the subjective monitoring will point to only a few indicator to ensure the move forward is with a basis.
they always said a bunch of points, but they only execute one of it & they already knew which one b4 testify. keep monitor the market trend and finally u will realize which was it - but hopefully not too late. as small player like klci - don't fight the wave :D
That is correct. US market is akin to an addict basically living off quantitative easing.
Either way, Bernanke is in no man's land. I still believe zero rate is not the way to go! How about rate hike and continuous buying? Malaysianomics! Hehehe
This is really a old story with a new twist. With the demarcation of borders gone global, they should know the indicators cater partial. Ask the EU and UK who are now very familiar. Just look at the taxes evaded and u know this is a potential outbreak.
No lah KC, even Najib says one thing but at the back, all the outflow are thru companies associated with him. GLC companies and the top 30 is hard to track this days.
Maybe someone can help me understand how to track. If the countries within EU, they at least have a framework and in the US it's a single country with autonomous companies abroad which can still be track. Malaysia, ala submarine, 4 sub companies found outside and to trace , there is no framework. If they use the French proceeding to help unweil the companies then what?
For your info Bernake took the decision against the establish economist opinion. The action is not wrong simply because he sees from many angle.
Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein
What they were earlier doing is starting the engine over and over again and hoping it will start using all the old material and oil and etc. this was what the economist recommended. Let see now.....a real kick in must have at least majority key indicator starting to show positive or maybe new indicators. Don't forget their market and Europe got into this also becoz they are the leader in derivatives and futures.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
KC Loh
13,701 posts
Posted by KC Loh > 2013-06-20 11:08 | Report Abuse
has to be done because US equity market is growing at a rate difficult to comprehend now. probably Bernanke's way of slowing down the bullish sentiments without inviting hyperinflation later.