Friday, March 20, 2009

Let the fools take the hits!

Hi guys, I’m back again!

Quite a few of you asked me to do this quickly as they are about to enter the market. Beware!!!!! To me this is a Fool’s Rally (aka Bear Rally), I know that I shared with you that I see a V-shape recovery starting from late 2009. I know I also said that financial markets recover before the actual economy does. But I am of the opinion that the economy has not digested the excesses of the last ten years.

With that in mind, I think the market has some way to go, down that is! A lot of people do not understand that there has been a fundamental shift of the Americans about consumerism that is they stopped spending. They still account for the lion’s share of worldwide consumption, which is the principal driver of the world’s economies. Thus until they get some level of confidence back, its going to be tough.

The Singapore economy has certainly been affected, but the situation will be worse. I I know that there will be lots of retrenchments in the coming quarter (through the grapevine), things are certainly not looking good.

But why has the stock markets been doing well? Well, the markets is like a spring, you press it hard enough, there will be some form of recoil. This is what we are experiencing. For me the rewards of band trading do not compensate me enough to take such risks. This is my personal opinion of course, so do make your own opinion at the end of the day.

I always like compliments, who does not? Raymond C was very, very nice in writing the below testimonial for me and I must thank him. It is for people like Raymond who drives me in my job!

Here’s what he said.

“I attended one of Andy’s Wealth Creation Course sometime in Jan 2008, took his advice to remain liquid and prepare for a possible turn in the economy in the near future. So, I executed a plan I had been toying (ok..actually procrastinating) with for quite a while. I liquidated one of my apartments at a very good price there and then, and am now riding the downturn, biding my time for the right “ Opportunity ”. Thanks to Andy…for his invaluable advice and passion to share…and also to the impeccable timing of it all. I need to also add that Andy’s sharing did not stop after the course has ended..he is now reaching out to the Wealth Creation Alumni through his Blog! Way to go Andy! Cheers!”

Your Friend,
Andy Ong