the series of bad news goes like this in full blown (at least in theory) : money printing -> hyperinflation (market crash 10-20%, hyperinflation takes a while though) -> interest rate hike (mopping up excess liquidity, Bernanke's target 2015-16 hike) -> credit crunch (market crash 40-50%)-> Recession/Depression -> financial regulation -> market recovery. Market that is overleveraged will bear the biggest brunt!
if what is true of Bernanke's reduction to 65b bond/treasury buying, then it is good news as Kenneth Fisher said. it shows recovery and slowing down of the above recklessness! Rogers is worried about recklessness, this very same guy who said gold is heading US$900 per ounce! sheeshh....
if market recovery is faster than expected in US, interest rate hike could commenced, hence removing the potential danger of hyperinflation. Abenomics is also banking on that to jump start Japan's economy. there are pitfalls however, which you guys would just have to read up in Krugman's monetary policies!
Just some sharing regarding buying insurance for our own currency. The Public Bank Gold Investment account spread rate is not bad, only 4% difference and it is trade using online system (In case emergency). The risk is free if Mr.Teh bank can continue survive :) By the way,I'm also hope that Gold can fell further but as an insurance you possibly can consider that.
"the person who never bothers to think about the economy, blithely ignores the condition of market and invests on a regular schedule is better off than the people who studies and try to time his investments,getting into stock when he feels confident, and out when he feels queasy." Peter Lynch
even if local funds step in, confidence has been shaken with so much capital flight. Next will come the Q2 reports of most companies. Plantations will be atrocious, retail and consumer products slow, properties flat. mmm...
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http://www.tradethenewsroom.com/its-going-to-end-badly-jim-rogers-on-money-printing-2494 Grandpa Jim said it will all end soon. That we should all get out while we can.