I think that this may be a good time to invest in stocks. The reasons are:
> The last few months of the year are usually good for stocks
> Oil and commodity prices are moderating
> The stock markets have fallen 30% during the past year
Will the global economy recover? Will there be more bad news? On balance, I think that the bad news have probably been discounted.
Mr Tan, i disagree on this..
ReplyDeleteyes stocks are much cheaper today than last year and commodity prices are coming down but :
- the real problem is a global credit bubble (every country has been living on easy credit for too long), this is now unwinding (ie deleveraging)
- deleveraging is a very long process, the credit problems will flow into the real economy (ie tightening credit means less spending ie less profits for companies, then feedback-looping)
- the reason for commodity price falls are slowing demand and also deleveraging of long commodity bets by traders..
my guess is that all assets (stocks, property, commodities) will fall via a deflating credit bubble..