I cannot say your move is correct or not, as long as you are happy with it. Of course everyone have the time to escape, i am one of many now. The thing I am worry is, when people start losing money, they want to win it back even the timing or luck is not on their side.

How serious is the market? If I rate it from 0-10 for the seriousness, I would say 7-8 now.

Thank you, athlon11. Actually everyone has their own investment startegy, mine might not work for other people and vice versa. However, it is good to share things and do some comparisons. I would like to come here to see how things going on here. Hope you all have some good time also. Good luck!


This post has been edited by shih: Aug 17 2007, 11:18 PM

DJ ended green today. I hope Mon KLCI will be green onwards, and I hope I've entered at the lowest

The storm has not been over in USA. Earlier this year, there were many indicators pointed they will be heading to recession at end of this year. Now that their fed had reduced the discount rate, their next worry will be inflation.

Imagine the americans salary raise is slower than the goods price raise. They will be getting poorer and poorer in the real terms. We can expect they will have less consumption power and experience lower real growth.... this has been reflected in the oil price futures.

If you are young and aggressive, you can take the risk and gamble on the current stock market situation.

If you are near retirement age or are retired, I think it's a bad idea for you to invest too much, you can still try to take advantage of this market, but limit to max 25-50% of your portfolio.

The stock market future is uncertain.

it ended green because of the injection from the Fed

Some news on US economy:

Fed cuts discount rate, signals growth concern
http://uk.us.biz.yahoo.com/rb/070817/usa_fed_1.html?.v=2

Fed action signals won't neglect global role
http://uk.biz.yahoo.com/17082007/325/fed-a...lobal-role.html

This post has been edited by David83: Aug 18 2007, 09:13 PM

I think they have to create positive news to encourage people to come back

To be exact...US Gov inject the money into the banks earlier, but the market did not improve.

IT is Green on Friday bcoz of the announcement of reduction of Fed interest rate.

So it's some combinational actions; injecting money and decrease increase rate.

Though the DJ turns green, any slight negative news will send the share market spiralling down again. The US Subprime Mortgage problem haven't really subside yet...so do expect the market to be in volatile mood this week ahead...

Do hope that the market will stabilise a bit

They should have announced reduction of Fed interest rate first then only US Gov inject the money

Maybe they don't intend to reduce the interest rate if previous cash injection could help to boost the market.

I agree with you.

The initial cash injection was supposed to calm the market, but didn't have any effects. That is y the reduction in the interest rate...to give some positive news to the market.

The reduction of interest rate is not the best solution for this issue. There might be looking good now, but for coming weeks, I am not sure. When bad news come, they tend to come one by one but separately. I am not so positive even the interest rate being reduced 1%, it is just pushing up the inflation. If you are patient enough, wait until all the subprime being cooled down.

Look into the picture, dont just look at the picture.

That's right..
Lenders are in trouble with the defaulters, so until they found a way to clear things out and get back their money, they'll be in BIG trouble..
Maybe we'll just have to wait until those dying lenders to shut their doors first, and a regulation is intact, before investors gain back the confidence..
Reducing the discount rate would only put banks into trouble, so expect more turmoil to surface..
Next week, prepare to see more borrowers in Yen pushing the Yen up, and there'll be yet another turmoil..
More and more problems are surfacing up, that are not affecting the people, but directly affecting the big institutions..
With big institutions down, no one is going to pump funds into the market..

To be more precise, Fed didn't cut the Fed fund rate aka interest rate as people familar with, it is still 5.25%, the friday movement is cut the 'discount window' interest rate 0.50% where Fed specifically lend money to the investment banks/banks to help them with liquidity issue (from 6.25% to 5.75%).

The turbuluence come from the valuation on those mortgages securities, until now, banks value it as 'mark to the market' which is priced before subprime crisis happening, now with subprime woes, this should be lower down, but banks didn't lower their valuation on it on their books.
Just like you buy a stock Rm1.00 but after you bought it didn't trade afterwards, so in your book value you still treat it as Rm1.00, but actually market has drop, just the stock didn't trade so the closing price of Rm1.00 remains, doesn't mean it is value at Rm1.00. So this create uncertaincy in the market for investors.

Tomorrow will be the last day to perform AI (topup) at discounted service charge of 5.45% to selected PM funds in conjunction with the Failaka award.

Still hesitating on topping up on PFEPRF.

I'm only going to buy 2mr....

Buy what? New fund application for PFEPRF?

I wonder why it is taking so long for PM to open a new account?

It will usually take 2 weeks before one will receive the new account slip with the account number