Sunday, May 27, 2012

Great Singapore Sale has started this weekend...Are we seeing a great sale in stock soon?

The Great Singapore Sale (GSS) has officially started this weekend. I went to the Chinatown this evening and goodness me there were so many crowds in the OG shopping area, buying things that were on sale - some 20 to 50% off the original price.

So are we having a great global sale in stocks and shares too? Maybe soon? Everyone seem to be eyeing on the 17th June date where probably finally we are going to have a clearer idea on whether the Greek is going to accept the idea of an austerity or an exit from the Euro. Until then, we are probably going to see market trending sideways with no clear pictures until the 17th June.

Even if that is so, everyone seem to have already priced in Greek exit into the market. What is more dangerous if Greece decides to stay in Euro and the contagion spreads to their neighbouring countries, more notably Portugal and Spain. That is when we are probably going to see the real fear in the market.

The US will give a lending hand surely, at least until the election period - in the form of not-too-bad economic reports and quantitative easing. But a gloomy period awaits next year when the Bush tax rules expires and we began a new tax rules under the new President.

If the Europe is unable to settle their issues or make it worse next year, in addition to the much weakening economy of China (lower PMI manufacturing index evident), we will probably see a return to the 2008-2009 Global Financial crisis level.

It is going to be dragging... at least for much a while more...

1 comment:

  1. Finally the Great Singapore Sale 2015 is here! http://gssgo.com

    ReplyDelete

UA-57154194-1