The deepening global recession is sending shivers down everybody's spine - and there is no light yet at the end of the tunnel. Entering the month of March, from Dow Jones IA to KLCI, the stock markets worldwide took a nasty tumble on the first day's trading.It is now a world of jitters! Adding fuel to fire was AIG's quarterly loss amounting to US$61.70 billion.
Banks worldwide are now in a freezing winter. Keith Wirtz put it rightly that "you have almost no reason to own a bank stock".
The Dow decreased 299.64 points, or 4.2%, to 6763.29, a level which is less than half of its height in the middle of 2008. Worse still, the downside risk is still great and there is huge uncerytainty ahead.
One top-notch fund manager recommended recently that "cash is still the king".
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4 comments:
Some said that the Dow may even dropped to 5000 level.The outlooks are very bad.Why is Malaysia not affected?Is this self denial?
BNM has loosened its monetary policy by reducing the interest rate from 3.5% to the present 2%. This shows that we are worrisome about the future and the impact of the current crisis. Financially speaking, we are still healthy as our foreign reserves are huge and our external debts are manageable. It is the export market that we have to be worried about.
Obama has declared war on capitalism. People are not stupid. Why would one invest in a Karl Marx economy? Obama lied, the economy died. It will not end until he is out.
Feeling hope and change yet?
6/3/2008 - Obama becomes D Nominee (12,402.85)
11/4/2008 - Obama wins election (9,625)
1/20/2009 - Obama takes office (7,949)
Now - 6,744.18
Obama has certainly delivered on his promise of 'Change'
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