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 STOCK MARKET DISCUSSION V125, stimulus, no stimulus, stimulus...

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danmooncake
post Sep 14 2012, 04:28 AM

Market Up, Market Down...Wheee..
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Oh QE1, QE2, Q2.5.. and now QE3.. doh.gif

Previously, when the market tanks.. The Fed steps in.. now, Fed steps in regardless.

The Fed won't create jobs, but they create the money supply - "hoping" it will spur economic activitiies with more "borrowing" and more "risk taking". Now, the financial market is awashed with liquidity, but US businesses aren't expanding or hiring because of law and regulations that govt has put in prevented them from expanding.

I can't wait till end of this year or beginning of the next year when the fiscal cliff impasse will probably cause US economy to dip back into recession regardless of QEx. whistling.gif


Added on September 14, 2012, 4:34 am
QUOTE(primepeng @ Sep 14 2012, 01:55 AM)


Added on September 14, 2012, 1:57 amjust saw the poll by cnbc more than half of the people surveyed disagree the QE3 will bring the index to a higher level for long term. anyway for now virtually happy to see market react to Fed's move
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There is a diminishing return on every QEx program.. so like its' patient given antibiotics every time he's sick regardless of the sickness... sooner or later, the virus is immune to the treatment.

This post has been edited by danmooncake: Sep 14 2012, 04:34 AM
danmooncake
post Sep 14 2012, 08:09 AM

Market Up, Market Down...Wheee..
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QUOTE(ham_revilo @ Sep 14 2012, 07:56 AM)
in the short term is good for everyone. lets grab this opportunity to make some money  rclxms.gif
me on the other side hoping my losing counter can gain some so i lose lesser or maybe can profit brows.gif
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I think FBMKLCI could see another leg up.. hot money is going come back to emerging market.
Just buy dips and continue to do so, until Obama loses his presidency or Uncle Ben terms ends in 2014. laugh.gif
danmooncake
post Sep 14 2012, 09:34 AM

Market Up, Market Down...Wheee..
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QUOTE(yhtan @ Sep 14 2012, 09:22 AM)
Helicopter Ben is back sweat.gif
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He's not flying helicopter anymore.. he's in flying jet.. dumping money!

QE3.xxx is going to be a HUGE MONSTER!!

US 40bln/month and in 6-7 months time, that amount of money could buy all of MALAYSIA for entire year!
Watch out!! Inflation is going to those poor folks! wink.gif

danmooncake
post Sep 20 2012, 12:53 AM

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QUOTE(primepeng @ Sep 19 2012, 08:36 PM)
more money pump into the economy. the interest rate will decrease and those companies who make loan will benefit. More capital flows into businesses and creates higher income, salary and allowance should rise appropriately.
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In theory, it suppose to work like that.. but for the past 3 years, we have observed also it has diminishing returns.

Capital flows into business but a lot of businesses aren't borrowing because demand isn't there.
No demand, no need to hire more people, no higher income. Confidence is still quashed and people are cautious from the last recession. Banks made more money by trading and investing than lending money to businesses.

2009-2010 QE1 - 800 bln

2010-2011 QE2 - 800 bln

2011-2012 QE2.5 600 bln

2012 ..or bust.
QE3 - 40 bln/month unlimited printing until the UE gets to "acceptable" level.. this means banana money printing.
Time to buy more Gold and Silver!! or better yet, if you're big banks, borrow from US govt and pump up more into emerging markets and create more inflation for those poor suckas. brows.gif

This post has been edited by danmooncake: Sep 20 2012, 12:54 AM
danmooncake
post Oct 3 2012, 09:32 PM

Market Up, Market Down...Wheee..
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QUOTE(StupidGuyPlayComp @ Oct 3 2012, 05:08 PM)
laugh.gif pray the tornado strike US, lower the bean supply.............lol
wish the CPO can replace petrol, after pump into car, saga also become ferrari
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Tornado strike won't take out US bean supply, do you know how big the midwest crop area in US?
It is bigger than entire Peninsular Malaysia.

Also, you may want to rethink about CPO replacement for petrol because if it can,
then food prices in Malaysia could DOUBLE or TRIPLE. Only those trading CPO futures will benefit.

The average Malaysian household income today cannot sustain already.. they'll probably be riots and protests like
the streets in Greece later.

This post has been edited by danmooncake: Oct 3 2012, 09:33 PM
danmooncake
post Oct 6 2012, 11:19 AM

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QUOTE(yok70 @ Oct 6 2012, 05:47 AM)
WASHINGTON: The US unemployment rate fell to 7.8 per cent last month, dropping below eight per cent for the first time in nearly four years. The rate declined because more people found work, a trend that helps President Barack Obama and could have an impact on undecided voters in the final month before the presidential election.

Read more: US jobless rate falls below 8pc http://www.btimes.com.my/Current_News/BTIM.../#ixzz28SoCQ3S6

icon_rolleyes.gif
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If you believe this number.. you're with the Democrats.
If you don't, you're with Republicans.. they think the White House cooked the books. laugh.gif


danmooncake
post Oct 6 2012, 10:23 PM

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QUOTE(yok70 @ Oct 6 2012, 08:49 PM)
Coca Cola i kind of worry for its VERY LONG TERM business since people nowadays are getting more into less sugar food, and diet coke taste like medicine!  laugh.gif
I just think the risk is there for Coke, since it's a "super recipe" and so if this sugar concern really getting much more attention in future, how can it transform its business to maintain profitable?

For the same reason, I don't buy tobacco stocks. Since I always think its business can only get smaller each year. Although now still ok, but we are seeing increasing number of non-smoking young people(this is the important part). The trend is growing. However, I think there is nothing iconic on MacD. Only 1 thing, it's fast food. And fast food can also be healthy food. Nobody care about must get a BigMac in MacD, people just buy whatever they provide. So the flexibility is there for MacD.  hmm.gif

Johnson & Johnson business I like very much. Is this company good as long term profitability? It's great to know it also 25 years dividend growing story! I'm gonna start monitoring MacD and JJ now.  notworthy.gif
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You know, Coke has pretty much diversified from just its main cola products. As for the diet (aka light) product, you know I liked this taste. I think it is much better than non-diet sugary product. Coke now also sell bottled water. This is a huge money maker for them.. just for selling distilled water. Anyway, coke dividend is safe.

Also, if you think fast food can be healthy food, then I'm all in MCD.. LOL! MCD is making huge money especially in China (tho, it has slowed down since last Q). MCD in USA now serves salad and salad menu is more expensive than meat burgers. Diet conscious customers willing to pay more for them, therefore huge profit margin. Also, their premium coffee beverage is taking share away from Starbucks. Nice!

All in all.. good divi stock play picked by Divi Warrior.

This post has been edited by danmooncake: Oct 6 2012, 10:24 PM

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