Yes, players in KLSE over reacted in throwing away all the stocks on the cheap. Too fearful of the memories of 97-98 currency crisis being recalled n refreshed by the free news n essays on the net.
DOW's current weakness seems scary. S&P 500 is in normal profit taking activities. Nasdaq looks like nothing bad is about to happen.
What r these indices telling us n which index to follow now ?
07-09 subprime crisis was allowed to happen with the whole purpose of
killing the demand of # 1 USD enemy, EURO$.
This time around there seems no compelling motive for FED, maybe a time
to strengthen the USD on a measured pace across the board.
The side effect of safeguarding the USD caused the US mkt to crash miserably to Mar 09. It is like the mkt had dropped into a big deep drain. To bring the mkt up, FED has to implement 3 successive GE 1, 2, 3. In so doing, FED has spent so much money to bring the mkt up n running.
Do u think FED will let it drop into the drain again ?
It should be a time US wants to make back all the money in the world. n the 1st move is to strengthen the USD over time. With stronger currency, US can import more for the same money. The shining USD is now attracting demand by traders n the return of USD as the main international currency for business n trade ever again...
US stock mkt culture is based solely on daily news flow.
All the reporters n journalists of free internet news portals r controlled n salaried by the prominent hedge funds. Either way, they will dramatized the news to the easy benefit of the funds.
And lots of highly educated readers with good englan always r being taken to the 'cleaners' following those free news essays.
Importantly, all of us have to make a stand whether these r noises or a real start of new damaging world crisis event capable of leading to bankruptcy of some PLC in wall street.
Sometimes n at times like this, we must think it is not that easy to crash a mkt !
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