Monday, August 18, 2008

Is this the right time to invest in stocks?

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.
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1 comment:

ym said...

Mr Tan, i disagree on this..

yes 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..

August 18, 2008 9:14 AM

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