Saturday, May 20, 2006
stOcK mArkEt CrAsH
this week is not really a good week, stock market going down in all asian countries (of course except China). not even stock market, asian currency also weakened, mirroring stock market losses after Wall Street's drop on fears of further US rate hikes and spark a massive sell down!
REASON :
Selling was sparked by higher-than-expected consumer prices in the United States - data taken to suggest that the Federal Reserve may continue raising interest rates.
The US markets are hit by inflation fears and a drop in housing starts!
Market remains gripped by anxieties about the West's nuclear standoff with Iran, the threat of supply disruptions in Nigeria and the upcoming Gulf of Mexico hurricane season.
simple analogy, inflation in US, hence Fed increase the bank interest rate.
meaning - borrowing money more expensive lor while putting money inside the bank will yield more, so understand the impact on business n economy?
easy to understand, right?
maybe i just worry too much lar but those stocks that i hold, are really cooler than ice water, basically freeze. 1st qtr of the year still above sea level, now below sea level, drowning and one of it is Creative, she's such a let down!
initially spending 200m+ to launch a head-on war with apple to beat their ipod market share but suffer operating loss, suddenly her stock nose dive... from a massive $28 to a low $14
this 2nd quarter suffer another 150m+ of operating loss, still trying to sue apple on some patent infringement, now apple counter sue.. so these few days, nose dive again to a low $9
ok.. enough of stock story, now back to the main story.
main story :
The US markets are hit by inflation fears and a drop in housing starts!
george soros mention that yr 2007 might be a recession year, especially a huge drop in housing in US consumers.. of course those irritating (so call smart) analyst quick to point out that the effect of US consumers on the world economy outlook are lessen now with the up-rising of China, but we'll see.
i'll rather keep n save some cash, when the market plunge, then it is a gd time to buy...
buy stock/share like buy stuffs in supermarket, damn easy lar
u buy groceries when the price go up or go down?
argh... late liao, so tired today
tomorz still got a VBA class at ITE and today also headache with some stupid migration issues, conference meeting at science park till 7pm, so many issues still unsolve, headache
sMurFy at ... [ 12:37 AM ]
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