photo by saibotregeel
Markets these few days have been quite turbulent, it's really scary. The Asian markets rallied today due to the coordinated interest rate cuts by central banks. I guess this may be the last few 'breathers' for the markets before the we head for the plunge. The Market Oracle gives a good review of what has happened in the past week.
Frankly, I don't think it is going to end soon, regardless of all the coordinated efforts that the governments are doing. Warren Buffett and Li Kah Shing who made respective buys into Goldman, GE and Bank of East Asia, have all seen their investments turn red.
News have reported that the hedge funds are pulling out their cash from the market because they forsee that their clients are gonna ask for withdrawals by the end of this year. Aside from the tight credit in the money market, this is another key factor as to why there is a huge sell-out lately.
I believe more bad news are waiting to hit. It seems thatt everyone is waiting for the last min before they announces how much bad debts they have. Yesterday, FerroChina (listed on SGX) have officially announced that they are going to default on a few hundred millions worth of debt. Counterparties are gonna be hit, and I think Ferrochina is only the first to come clean.
Today, ST reports the further plunging of various stock indexes. Even the insurers are not spared. Yamato Life Insurance and New City Residence Investment Corp reportedly when bankrupt.
Not an exciting time for a fresh graduate with little cash. No opportunity to earn the obsence large salaries my seniors were getting and no money to pick up bargain blue chips in the coming months of the depressing stock exchange.
Tough years ahead man. Good luck everyone!
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