Genting / Resorts, your time has come for you to retrace to 2 bucks a share!!!

I wont even trust any of the accounting reports of Malaysian companies. There's too many unknowns, too much risk.

Seems like Malaysians companies, such as AirAisa are more creative than Enron and Worldcom combined. I always ask myself, how do these brokerage houses determine EPS/PER when the accounting statements are beautifully sugarcoated.


That's why i seldom speculate Malaysia shares; even more so now when the US equities are severely beaten up.

This post has been edited by AdamG1981: Jun 12 2008, 07:07 PM

Actually, US doesn't tolerate writeoffs. Look at Bear Sterns, Lehman Brothers. Both Worldcom and Enron senior management team were indicted and sentenced to jail after a lengthy investigation.

Transparency is key in US equities. If you follow the Lehman Brother's case, you will understand that investors confidence are severely shaken when the CEO says he doesn't need to raise capital but now requires two major cash injection to stay alive. Shares were 80 dollars few months ago, nows its at 26 usd.

As for malaysia's equities, sure there are some potential ones but Malaysia has never created a 5 star global company. (Maybe PBB can be one) Nevertheless, until Malaysia's accounting crediblity is restored, then more foreign investors will be interested.

You can say both markets are imperfect, but we always seek risk-less returns. And i can assure you, US equities are much "safer" than emerging markets.



This post has been edited by AdamG1981: Jun 12 2008, 07:59 PM

US retails sales at 8:30 am, another DISAPPOINTMENT?

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Added on June 12, 2008, 8:08 pmThat's because AIG management took too much risk in the OTC market, same with all the big financial boys. You have a BIG leverage because you want to make more. So when couple of investments GO WAY BAD (subprime), they lost billions because of leverage.

Bear Sterns was one victim, and we are not out of the woods yet.



This post has been edited by AdamG1981: Jun 12 2008, 08:08 PM

Yes, you are right. I am watching tomorrow's CPI/PPI number but judging from imported prices today, i would expect CPI to jump a huge number. MY trading strategy would to short FKLI tomorrow for DJIA Friday's drop of 200 points.


Peace

Retail sales is higher than expected amid higher jobless claims. However, be prepared for another drop on Friday 13th.

Hm, so are you saying that having a higher rate of inflation is better than being in a recession?

Ok, i do understand that consumer confidence and business confidence affects markets; but how does it relate to higher inflation and a recession? Both these market conditions affect investors confidence.

I would think any Central bank governors will prefer a recession than a high inflation with price instability.

This post has been edited by AdamG1981: Jun 12 2008, 11:56 PM

Central banks are independent; maybe some governments to have an influence in monetary policy but US central bank is independent.

Again, you are misunderstood my point. We are comparing both inflation and recession; which one would a central banker prefer?

Recession / Expansion is a cycle. Indeed no one requests to have a recession. Ben & Co had no choice but to raise interest rate because the economy is "too hot" and therefore tightening of the monetary policy is needed. Unfortunately for him, the US economy is suffering from a large trade deficit and fiscal deficit. When he lowered rates, this spurred the rush of buying oil as an hedge to fight inflation due to a weaker dollar. Hence, today we have a worldwide oil shock crisis due to the depreciation of the US dollar.

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Added on June 13, 2008, 8:27 amDow Jones was up last night as much as 170 points and closed only 50 points higher. Hmmm, does not bode well.


This post has been edited by AdamG1981: Jun 13 2008, 08:27 AM

The big boys announced massive write offs was because of aggressive investment management in very risky asset classes. Ben & Co had to rescue Bear Sterns (amid controversies) because it will rattle the entire financial industry and caused greater harm overall if they did nothing.

I do agree the Feds are confused now; fighting inflation or rescuing the financial sector. But bear in mind, the US Federal reserve has always been independent regardless if there's a republican congress/president or vice versa.

Both trade and fiscal deficit was caused by Bush disastrous tenure as President. WAR in IRAQ/Afghan took billions of dollars from the Taxpayers. Not only that, American consumers were high on Chinese made product because it was so cheap. Indeed the Americans brought this to themselves. The FED could not avoid this since trade and foreign affairs policy were handled by the White House.

So i don't see why the Fed should take the blame for Bush's cowboy antics.

The FED only governs monetary policy, setting interest rate, performing open market transactions (purchasing,selling us dollars) or in layman terms currency intervention.

The US government or US Congress determines FISCAL policy, and BUSH can VETO if he WANTS.

During Clinton's presidency tenure, US had a BUDGET SURPLUS, but since Bush took over, we been in a budget deficit for years. WAR was approved by Congress? The first ever stimulus was signed by Bush and approved in Congress.

Congress could have impose higher tariffs on Chinese goods, but they didnt, allowing for cheaper chinese goods to come in and taking away jobs.


US Congress = Fiscal policy

Federal Reserve= Monetary policy

OK, so you utilize violence to spread democracy? Two wrongs don't make a right. Sure US armies might have the largest weapon arsenal but they are breeding suicide bombers. These suicide bombers are fanatics and they will kill innocent victims for their religion. So when will this "cancer" be cured?

Who benefited from the war from Iraq? Its all the defense company linked to d*** Cheney. Check haliburton. This is cronyism at its very very best.

Khazanah said government linked companies can wether the fuel hike.

http://www.cnbc.com/id/25132159/for/cnbc

BLACK monday worldwide becoming reality? Find out at 8:30 pm today!

Housing foreclosure increased for the third month
Read more here:
US foreclosures total 261,255 in May, up 7 pct from April

http://www.cnbc.com/id/25135821/for/cnbc

CPI / CORE CPI @ 8:30 pm CNBC

Inflation news:
India's inflation jumps to 7-year high of 8.75 percent

German May consumer price index posts 3 percent year-on-year increase; Fuel prices weigh

This post has been edited by AdamG1981: Jun 13 2008, 05:39 PM

Aiya, Holland game coming next. Go relax guys.

US Federal Reserve and European Union Central Bank are risking another 1987 crash rerun.

Signs:
a) Ben Bernake and Co said they wanted a stronger dollar to counter inflation

Result: Dollar rallied, oil drop

b) ECB Trichet said he will aggressively increase interest rates to counter inflation

Result: Dollar fell sharply, oil jumped 10 dollars, Dow Jones and S&P tumbled 3.1 %

G8 meeting this weekend:

What will the Feds do?

The core inflation is understated; its much higher than 0.2%. I be looking for a bigger increase few weeks from now

Precisely, the fact is inflation is rising rapidly in everywhere in the world. IT doesn't matter how the Fed or the market dissects core CPI because consumers still have to pay more on EVERYTHING now.

Dreamer,

Even if its 10% to 20% of consumer spending, it will dampen heavy item purchases because high prices of oil and food will sour the overall consumer mood. As you know consumer spending is 2/3 of the economy, and all leading indicators have shown a slowdown in consumer spending. Also, if the consumer inflation expectations increase, then the FED has no choice but prepare to raise interest rate.


IF you notice also, the usage of credit card in America dropped, but the overall debt increased. This is the next CRISIS as more and more people are out of job and with high inflation, there is no way middle/low class Americans can clear its credit card debt.


Speculation or non speculation, crude oil prices are driven by DEMAND and the LACK of SUPPLY and solid production. Simple rule, demand exceeds supply. OF course when China starts to lift its subsidies on fuel, demand drop, hence price of oil will in turn drop.

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Added on June 14, 2008, 8:35 pmThe Feds , and the G8 had agreed that the strength of the US dollar is the key in managing inflation. How does the FED do it? The easiest is increase interest rate. Performing open market transactions is insignificant especially the US dollar marketplace is $2 trillion USD daily. Unless ECB and BOJ coordinates a series of open market transactions (purchasing US dollar) then the Federal Reserve can avoid increasing interest rate.

However, do you guys remember back in 1987? What did West Germany do? Increase interest rate while the US Feds was conducting open market transactions.

Result: 1987 crash, Dow Jones drop 23% and the worldwide market cascaded.

With Bernake being a very inexperience Fed Governor, and EU being a very young concept; a crash will likely happen when both Trichet and Bernake differs in policy.



This post has been edited by AdamG1981: Jun 14 2008, 08:35 PM