today sti "purposely" was being brought down 20 over points to allow space for hangseng to go up to its 200day moving average at around 20K,so that when hangseng touch 20K,sti will hit 3037.BOTH WILL BREAK THRU THEIR RESPECTIVE RESISTANCES AT THE SAME TIME
STOCKMARKET IS NOT PURE GAMBLING.IT CONCERNS THE ECONOMY AND JOBS.EVEN IF YOU DO NOT INVEST IN THE STOCKMARKET,YOU WILL ALSO BE AFFECTED BY ECONOMIC RECESSIONS "INITIATED" BY THE STOCKMARKET TO "COOL DOWN" AFTER PERIODS OF GROWTH.
THINK IT OVER.WHEN ECONOMY IS STRONG,EVERYBODY IS JUST SPENDING LIKE CRAZY,BECAUSE BONUSES ARE STRONG,INFLATION IS CRAZY SPIRALLING UP.THERE IS NO WAY GOVERNMENT CAN CONTROL INFLATION.IMPOSING TAXES AIN'T ENOUGH TO DETER SPENDING BECAUSE PEOPLE STILL HAVE JOBS AND BONUSES.
LOOK THE CURRENT SINGAPORE ECONOMY.PEOPLE STILL BUY CONDOMINIUMS DESPITE THE EXTRA TAXES,ABSD,ETC.WHY?PEOPLE STILL HAVE JOBS AND BONUSES.GOVERNMENT FISCAL POLICIES HAVE NOT ONLY A LAGGED EFFECT(AS IN TEXTBOOKS) BUT PEOPLE ARE JUST GOING TO SHRUG IT ASIDE.
SO HOW REALLY TO HAVE A COOL DOWN??AFTER EVERY CRAZY SURGE IN THE STOCKMARKET,THERE WILL BE A CRASH IN THE STOCKMARKET.WHY??THE CRASH IN THE STOCKMARKET IS ACTUALLY A COOLING DOWN MEASURE.
WHEN STOCK PRICES OF BLUE CHIP COMPANIES CRASH,NATURALLY UNEMPLOYMENT WILL GO UP.
WHEN STOCKMARKET CRASH,NATURALLY MORE PEOPLE LOSE MORE THAN EARN,AND THUS WILL ALSO BE FORCED TO SELL THEIR PROPERTIES,HENCE ALSO "COOLING" DOWN THE OTHER SECTORS.
THE ABOVE 2 EFFECTS OF STOCKMARKET CRASH WILL NEXT AFFECT DOMESTIC CONSUMPTION,AND INVESTMENT AND VIA THAT THRU THE MULTIPLIER AND ACCELERATOR EFFECT,MORE JOBS ARE LOST AND ANOTHER ROUND OF DOMESTIC CONSUMPTION REDUCED.
HARDLY ANYBODY IS GOING TO REJOICE IN RECESSIONS,THE WORKERS AND THE PROPERTY OWNERS.BUT ON THE CONTRARY,STOCKMARKET TRADERS ARE GOING TO REJOICE AS IN THE STOCKMARKET,TRADERS CAN PROFIT BY SHORTING THE MARKETS DOWN.
IN THE STOCKMARKET,TRADERS ARENT WORRIED ABOUT RISING MARKETS AND PLUNGING MARKETS.WHAT THEY WORRIED ARE A FLAT MARKET AND GETTING THE DIRECTION WRONG.ONCE YOU GET THE DIRECTION RIGHT,TRADERS CAN EASILY PROFIT FROM A SURGING OR A PLUNGING MARKET OR BOTH.
YOU CAN CHOOSE TO ABSTAIN YOURSELF FROM THE STOCKMARKET,BUT PLEASE DON'T COMPLAIN LIKE THE AUNTIES IN THE MARKETPLACE ABOUT INFLATION EATING INTO YOUR REAL INCOMES.IN THE LONG RUN,IT IS ONLY THE STOCKMARKET THAT IS ABLE TO GIVE YOU EXCEEDING INFLATION RETURNS(PROVIDED YOU SELL AT NEAR HIGHS AND BUY AT NEAR LOWS).
FOR EXAMPLE,YOU LOOK AT SP500 RISE OF NEAR 14X FROM AROUND 100+ IN 1982 TO 1500 IN 2000.ISN'T THAT ENOUGH FOR YOU TO COVER FOR INFLATION FROM 1982 TILL 2016 WHEN USMARKET START ITS NEW SECULAR BULL MARKET????
SO YOU CHOOSE.YOU DO NOT JOIN THE STOCKMARKET,YOU DIE FROM INFLATION.
YOU CHOOSE TO JOIN THE STOCKMARKET,YOU MAY NOT DIE PROVIDED YOU ARE PRUDENT AND DIVERSIFIED YOUR PORTFOLIO,AND KNOW WHEN IS NEAR THE HIGHS AND LOWS.
STOCKMARKET CONTROLS THE ECONOMY IRREGARDLESS OF YOU LIKE IT OR NOT.NOT THE OTHER WAY ROUND.THE STOCKMARKET IS GOING TO SOAR DESPITE OF FEW RETAIL PLAYERS JOIN.AT EVERY BOTTOM OF THE STOCKMARKET,THERE IS BOUND TO BE LITTLE RETAIL PLAYERS.BUT DOES THE STOCKMARKET CARE??NO,IT JUST SURGE UP!EXAMPLE,MARCH 2009 BOTTOM-JULY 2009,STI SURGE UP NEAR 100% IN 4 MONTHS,OTHER SMALL/MID CAP STOCKS SURGE UP UP TO 400% FOR SOME.
ON THE CONTRARY,THE STOCKMARKET IS ALSO GOING TO CRASH DESPITE FRANTIC AND IMMENSE PARTICIPATION FROM RETAIL GOONS.
SO ADULTS,PLEASE WAKE UP
STOCKMARKET IS NOT PURE GAMBLING.IT CONCERNS THE ECONOMY AND JOBS.EVEN IF YOU DO NOT INVEST IN THE STOCKMARKET,YOU WILL ALSO BE AFFECTED BY ECONOMIC RECESSIONS "INITIATED" BY THE STOCKMARKET TO "COOL DOWN" AFTER PERIODS OF GROWTH.
THINK IT OVER.WHEN ECONOMY IS STRONG,EVERYBODY IS JUST SPENDING LIKE CRAZY,BECAUSE BONUSES ARE STRONG,INFLATION IS CRAZY SPIRALLING UP.THERE IS NO WAY GOVERNMENT CAN CONTROL INFLATION.IMPOSING TAXES AIN'T ENOUGH TO DETER SPENDING BECAUSE PEOPLE STILL HAVE JOBS AND BONUSES.
LOOK THE CURRENT SINGAPORE ECONOMY.PEOPLE STILL BUY CONDOMINIUMS DESPITE THE EXTRA TAXES,ABSD,ETC.WHY?PEOPLE STILL HAVE JOBS AND BONUSES.GOVERNMENT FISCAL POLICIES HAVE NOT ONLY A LAGGED EFFECT(AS IN TEXTBOOKS) BUT PEOPLE ARE JUST GOING TO SHRUG IT ASIDE.
SO HOW REALLY TO HAVE A COOL DOWN??AFTER EVERY CRAZY SURGE IN THE STOCKMARKET,THERE WILL BE A CRASH IN THE STOCKMARKET.WHY??THE CRASH IN THE STOCKMARKET IS ACTUALLY A COOLING DOWN MEASURE.
WHEN STOCK PRICES OF BLUE CHIP COMPANIES CRASH,NATURALLY UNEMPLOYMENT WILL GO UP.
WHEN STOCKMARKET CRASH,NATURALLY MORE PEOPLE LOSE MORE THAN EARN,AND THUS WILL ALSO BE FORCED TO SELL THEIR PROPERTIES,HENCE ALSO "COOLING" DOWN THE OTHER SECTORS.
THE ABOVE 2 EFFECTS OF STOCKMARKET CRASH WILL NEXT AFFECT DOMESTIC CONSUMPTION,AND INVESTMENT AND VIA THAT THRU THE MULTIPLIER AND ACCELERATOR EFFECT,MORE JOBS ARE LOST AND ANOTHER ROUND OF DOMESTIC CONSUMPTION REDUCED.
HARDLY ANYBODY IS GOING TO REJOICE IN RECESSIONS,THE WORKERS AND THE PROPERTY OWNERS.BUT ON THE CONTRARY,STOCKMARKET TRADERS ARE GOING TO REJOICE AS IN THE STOCKMARKET,TRADERS CAN PROFIT BY SHORTING THE MARKETS DOWN.
IN THE STOCKMARKET,TRADERS ARENT WORRIED ABOUT RISING MARKETS AND PLUNGING MARKETS.WHAT THEY WORRIED ARE A FLAT MARKET AND GETTING THE DIRECTION WRONG.ONCE YOU GET THE DIRECTION RIGHT,TRADERS CAN EASILY PROFIT FROM A SURGING OR A PLUNGING MARKET OR BOTH.
YOU CAN CHOOSE TO ABSTAIN YOURSELF FROM THE STOCKMARKET,BUT PLEASE DON'T COMPLAIN LIKE THE AUNTIES IN THE MARKETPLACE ABOUT INFLATION EATING INTO YOUR REAL INCOMES.IN THE LONG RUN,IT IS ONLY THE STOCKMARKET THAT IS ABLE TO GIVE YOU EXCEEDING INFLATION RETURNS(PROVIDED YOU SELL AT NEAR HIGHS AND BUY AT NEAR LOWS).
FOR EXAMPLE,YOU LOOK AT SP500 RISE OF NEAR 14X FROM AROUND 100+ IN 1982 TO 1500 IN 2000.ISN'T THAT ENOUGH FOR YOU TO COVER FOR INFLATION FROM 1982 TILL 2016 WHEN USMARKET START ITS NEW SECULAR BULL MARKET????
SO YOU CHOOSE.YOU DO NOT JOIN THE STOCKMARKET,YOU DIE FROM INFLATION.
YOU CHOOSE TO JOIN THE STOCKMARKET,YOU MAY NOT DIE PROVIDED YOU ARE PRUDENT AND DIVERSIFIED YOUR PORTFOLIO,AND KNOW WHEN IS NEAR THE HIGHS AND LOWS.
STOCKMARKET CONTROLS THE ECONOMY IRREGARDLESS OF YOU LIKE IT OR NOT.NOT THE OTHER WAY ROUND.THE STOCKMARKET IS GOING TO SOAR DESPITE OF FEW RETAIL PLAYERS JOIN.AT EVERY BOTTOM OF THE STOCKMARKET,THERE IS BOUND TO BE LITTLE RETAIL PLAYERS.BUT DOES THE STOCKMARKET CARE??NO,IT JUST SURGE UP!EXAMPLE,MARCH 2009 BOTTOM-JULY 2009,STI SURGE UP NEAR 100% IN 4 MONTHS,OTHER SMALL/MID CAP STOCKS SURGE UP UP TO 400% FOR SOME.
ON THE CONTRARY,THE STOCKMARKET IS ALSO GOING TO CRASH DESPITE FRANTIC AND IMMENSE PARTICIPATION FROM RETAIL GOONS.
SO ADULTS,PLEASE WAKE UP
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