My Two Cents Worth!

Let's not get into those 'spitting' competition, but stay on real facts back by data that's publish with statistics. So as to avoid the 'fear' driven knee-jerk reactions that has left a lot out there to surfer the consequences of their own foolishness.

There are so many different school of thoughts. In one corner there are these group whom has on every sunrise daily claims that the world is doomed, thus their sentiment is to sell everything and hold cash - moved to the mountain to live a life of soliditary. Yes or yes! Am sure you have come across these 'types'.

In M'sia some unsupported sentiment driven fear are also lurking around. Thus, such overview/opinion that the equity market is going to collapse, by tomorrow!!! These group has preach that all should hold bonds or fixed income. The sad thing is that if one is to hold their assets in  money market or fixed income instruments they are actually having negative real returns for the last one year.

However data that reads the barometer of the global economy is of late pointing to no such collapse, but growth.

Some real official data as follows:-

(1) Europe - a lot says that Euro is not recovering well. But the most latest publish (real) statistic show a record low jobless rate.

(2) Europh GDP is no longer contracting albeit a small growth.

(3) US - Consumer Confidence Index is at all time high since 2008. These numbers dives retail consumption in the US.

(4) New home sales in the US too is no longer contracting but shows y-o-y growth.

(5) Interest rates in the largest world economy could see for the 1st time since 2008, a hike from a near zero rate in US come 2015.

(6) China has on 17th Nov allow its Shanghai equites to be traded in Hong Kong Exchange that's valued in the trillions. China opening up is very good.

(7) China has stabilise and no longer going into a hard landing as its GDP growth for 2014/2015 is holding at 7 percentage points. Not no longer reads double growth.

So I guess it's not at all likely for one to see an equity collapse in the next few years. However, in the shot term as usual, there will be knee-jerks that may result in a sell down but not in anyway an equity collapse in the proportion of the Wall Street 1929 crash or the 2008 Sub-Prime market crash.

You will eventually see that equity index on a continuous uptrend.

 So till then!

Cheerios

TJLim