Just be wary that this could happen and there are efforts to get away from USD. China already have agreement with Russia to pay for their oil directly in Yuan instead of USD. Speculation that the main reason for US to invade Iraq is because at that time Saddam is actively trying to switch the petrodollar to Euro. If that happen, US economy would crash as there is no more demand for USD to pay for oil. Google petrodollar to understand more about this.

Open, transparent, free-market economies like the US are not dependent on government spending, alone. The US is not a centrally planned economy - it has a large private sector. They have people like Jobs and Zuckerberg who generate market demand regardless of what the government is doing.

Spending cuts are bad when they are wholesale across the board. Spending is bad when it gets out of control. Somewhere in between the Republicans and Democrats have to agree on something. But I don't believe they (both sides) will come up with something that will make the US economy "tank".

The Yuan is pegged to the USD. Until they are prepared to let it float freely according to market forces, bi-lateral agreements are irrelevant - the USD is still king.

This post has been edited by howszat: Aug 27 2013, 09:08 PM

Debt ceiling drama is on its way again:

U.S. Treasury to Hit Debt Limit in Mid-October

URL: http://finance.yahoo.com/news/u-treasury-h...-001100306.html

Drop more please.
Bullets are ready, just waiting to shot the target

This post has been edited by Macrusin: Aug 28 2013, 12:30 AM

Wall Street posts worst day since June on Syria concerns

Stocks End Near Lows as Nasdaq Falls 2%; Dow Off 170

URL: http://finance.yahoo.com/news/syria-tensio...-112221416.html

Geopolitical tension!

just when should the "WAIT", Stops? What are the triggers that activates the "shoot"?
geeee., it may be just a traps.....example.....just recently, June market dropped, July when up, now Aug down again....so if you had just shoots in July because of June drops....kena-lah Aug dropped much worst. ,
so wanna shot in Sept?...then Septaper is coming?? Shot in October??...then Fiscal sequester in coming,.....shot in Nov?.....GDP Reports coming......

just a note:
Buying more shares at a lower price than what you previously paid is known as averaging down, or decreasing the average price at which you purchased a company's shares. However, even though your average purchase price would've gone down, you would've had an equal loss on your original stock - a $10 decrease on 100 shares renders a total loss of $1,000. Purchasing more shares to average down the price wouldn't change that fact, so do not misinterpret averaging down as a means to magically decrease your loss.

The trick is to know when to apply averaging down. But there are no hard-and-fast rules. Basically, you must re-evaluate the company you own and determine the reasons for the fall in price. If you feel the stock has fallen because the market has overreacted to something, then buying more shares may be a good thing. Likewise, if you feel there has been no fundamental change to the company, then a lower share price may be a great opportunity to scoop up some more stock at a bargain.

It's important to realize that it is not advisable to simply buy shares of any company whose shares have just declined. Even though you are averaging down, you may still be buying into an ailing company that will continue its downslide. Sometimes the best thing to do when your company's stock has fallen is to dump the shares you already have and cut your losses.

http://www.investopedia.com/ask/answers/04/052704.asp

This post has been edited by yklooi: Aug 28 2013, 08:26 AM

The sequester expect to result in more than a million job loss and don't forget that significant percentage of the new job creation by private sectors are for temps, not permanent full time. US economy is driven by consumption and consumption has not gone up significantly due to negligible pay increment. No increment and job loss will have impact on US economy. Yes, the democrats and republicans are trying to get out of sequestration but that have not got any headway yet and debt ceiling issue is coming up again. For everyone sake, I hope they do something fast.

This post has been edited by kimyee73: Aug 28 2013, 08:47 AM

This is not about bi-lateral agreement but about not depending on greenback to buy oil. If more and more countries stop using USD to buy oil, the world will be less dependent on USD and that spells bad news to USA.

Ok, time to switch off MarketWatch and Bloomberg

there are rumours that russia and china is piling up on gold, alot of gold. if these 2 country started to drop petrodollar, US economy will suffer and there would be a rush into gold unlike anything we have ever seen before

very red today la >< how a.. all tis yhear ROI become red edi >< normally ppl do is to rebalance and topup when the market recover? or sell off to minimize loss/lock in profit first..

these are the countries and ALOT of the countries in the world has LAGRE reserves in USD..you tell me which countries wan to see the reserves drops??

The fund managers might have already raised cash levels...

Heart must be steady...

yes,...noticed in some of my Hwang's asia exposure funds since May/June.
jfi, noticed too these funds had increased some % of exposure to HK in the month of July.

haha.. but i never been into major selldown before >< so need some tips here lo.. for me i might go panic sell, but for u who experience oledi maybe can give me some good advices haha..

2010 I panic sell

But in a hindsight, SHOULD HAVE REMAIN INVESTED.

When do you need to touch $ in your portfolio?
if < 12 mths....consider switching to other asset class.
if > 24 mths.....follow what pink just advise....."Ok, time to switch off MarketWatch and Bloomberg"
if still got spare $$ in these time.....buy on valuation...

just my 2 cents

This post has been edited by yklooi: Aug 28 2013, 10:11 AM

I just bought in 2 lots of company share on monday intended to averaging down the price.

Remain invested as in, don't do anything OR include some form of average down during the period?

Please advise Pink.