Tuesday, July 28, 2009

Economic Update

Its been a while since a did a post on the economy.

Been looking through some of the reports/news and here is some important things to take note.

  • Some reports feel that market now is in the over-evaluation stage (However, this stage usually lasts for quite some time. But do expect a correction when almost EVERYONE starts to feel extremely confident about making a quick buck)
  • Out of the 64 banks in the US which has failed so far, 16 occurred this year (2009). The amount of $$ lost in the banks was USD 17.6 billion last year. However for this year to date, its USD 14.2 billion! WE ARE STILL LOSING AS MUCH $$!!
  • Ben Bernanke expects unemployment rate to go over 10% first before it eases. And the FED predicts this to happen around the 4th quarter 2010.

If we look carefully, the economic stimulus were placed quite some time back. However the financial institutions are still facing problems in the US. Why? This means that the real problems are not solved yet.

Though the stock market is supposedly a approx 6mths forward indicator of the economy, the real economy has not been really picking up just as fast as seen by the data. This implies that people are speculating!! So...Be CAREFUL! (However I feel that the speculation is just in the beginning stage, so there is actually still some room left)

Base on my own TA, I feel that there is still room for the Singapore market to go before the slight correction.

Target: STI 2800 (It will act as the resistance, however if this breaks, it should run)

Support: 2400

1 comment:


The economy worldwide is two sided the destress of euroland and the united states and than the brick countries which are the driving force going foreward.