i have this feeling that 2008 stock market before july is fine after that will have some problem

bro tkw; pls come up with a figure
and constructive statement supporting ur claim

Hmm...
Honestly I think the first 3 months of next year will probably see a big rally. Some market researchers are predicting that Fed will cut at least 50 basis point early next year. Then again, that period would coincidently be the time when the financials finally announce how much will they write down especially CitiGroup and HSBC. These are the two that already loaded the SIVs onto their balance sheet and it will hurt their earnings report.

What does SIV stands for? I read it some where in the news article too.

I think this is the one:

http://en.wikipedia.org/wiki/Structured_investment_vehicle

digesting.....

Citigroup to Assume Control of SIVs

Citigroup Will Assume Control of 7 Structured Investment Vehicles With $49 Billion in Assets

URL: http://biz.yahoo.com/ap/071214/citigroup_sivs.html

Izit becoz of the Beijing 2008???

Beijing 2008 starts in the month of August.

GLOBAL SHARE SLUMP

December 18, 2007 - 8:43AM

World stock markets slumped today on worries that resurgent US inflation would reduce the likelihood of another US interest rate cut to shield the economy from a credit crunch, dealers said.

European bourses followed Australasia into the red with losses of up to 3.5% as investors took their cue from Wall Street's sell-off on Friday in the wake of unexpectedly strong inflation figures.

Investors took fright following news that US consumer prices jumped 0.8% in November. On a 12-month basis, inflation hit 4.3%, the fastest since June 2006.

"Higher inflation in the US will reduce the scope for more interest rate cuts. That's why investors are not so happy," said Francis Lun, general manager at Fulbright Securities.

London's FTSE 100 index of leading shares ended the day 1.86% lower at 6,277.80 points. In Paris the CAC 40 shed 1.61% to 5,514.88 while in Frankfurt the Dax lost 1.55% to end the session at 7,825.44.

Yesterday, Australian shares tumbled 3.5% after property giant Centro revealed it had been hit hard by the US subprime crisis and faced an asset sell-off. Tokyo closed down 1.7%, Hong Kong slumped 3.51%, Seoul shed 2.9%, Shanghai gave up 2.6% and Taipei lost 3.5%.

"Asian markets succumbed to the selling spree triggered by Wall Street's tepid performance" on Friday, said Kim Min-Sung, analyst at Bookook Securities. "The market fluctuated sharply as sentiment turned really fragile."

New York's Dow Jones index tumbled 1.32% on Friday in a volatile session as the price data raised fears of "stagflation" -- a combination of slower growth and stubborn inflation pressures.

Today US shares fell again as investors waited to see if cash-tight banks would take advantage of a $US20 billion ($23.3 billion) Federal Reserve credit auction to boost liquidity in the stressed banking system.

Investors appeared wary as the Fed credit auction got under way this morning. The results are not expected to be known until toorrow.

The Dow Jones Industrial Average was down 0.65% at 13,253.52 in midday trade. The Nasdaq composite shed 1.23% to 2,635.74 while the Standard & Poor's 500 broad-market index retreated 0.6% to 1,458.76.

The Fed has teamed with four other central banks, including the European Central Bank, to boost liquidity in the global banking sector, which has been stretched by the US housing slump and heavy losses on mortgage securities.

Major US banks have tightened their lending standards amid the housing downturn in a bid to conserve cash.

Analysts said the Fed, like many central banks, now faced the dilemma of whether to keep rates high to fight inflation or reduce lending costs so as to help ease the global credit crunch.

Last week the US central bank trimmed its short-term borrowing rate by 25 basis points to 4.25% in an effort to shore up economic activity. But now markets are unsure whether to expect a further easing of monetary policy.

Investors are also awaiting the release of fourth-quarter earning reports later this week by US investment banks Goldman Sachs, Morgan Stanley and Bear Stearns amid fears of further sub-prime home loan-related losses.

AFP

GLOBAL SHARE SLUMP in 2008..

IMHO, for next 2 quarters of 2008, market will rally based on assumptions FED will cut rates on Jan 18 2008 (if not mistaken) and China government will announced whether to execute its "bus system" in first or second quarter of 2008.
For local KLSE: GE likely will happen in first quarter of 2008 and probably will increase KLCI index. But that's depend on regional market sentiment.
Note: bus system = to allowed China investors to invest in Hang Seng share market.

the "bus system" is the final cure, they said

eat porridge, eat rice, all depends on china side whether to approve the "bus system" or not...

wat it got to do with USA marrket?



wat and how is *bus system* has the effect on the market?

Basically, i din play with US futures or US share market so i dun have any ideas how "bus system" will directly affect US markets. But it does affect on our KLSE HK warrants hehe ..
Note: Only for those ppls playing HK warrants, they will closely watching China news especially relate to "bus system".

If u still remembered, when China government announced the "bus system" plan, Hang Seng index shoot up from 24K++ to 32K++ in just 2 months+. Our HK warrants in KLSE shoot up in at least 10 folds. But the plan is postponed to first or second quarter 2008 so HK warrants begin drop to low price. So u imagine once "bus system" executed, will it boost our KLSE HK warrants to new high level.. hehe

Just reserved bullets at moment. Maybe it will rally once China give some good news on this "bus system". Hopefully....

Me too keeping FULL ammo in hand.

Now earning 3%/annum in the trust a/c. Hope there will be a correction after christmas. But also scared in Jan when USA financial co. starts annoucing bad news again on 2nd wave of subprime.

US Christmas sales weak.. adi impacting Taiwan/ Korea shares..

surprisingly Taiwan & Seoul closed in red today

are they really going to implement the rm40 per trasaction?

yes....