Wednesday, September 13, 2006
Outlook
The Japan funds I am holding have a lost over 10%. That seems to be a bad idea of over-weighting in Japan market.
Players in oil, gold and other commodity markets are feared of a global slow down. When the world economy loss momentum, that will also end the interest rate hike. Yet, the decline in energy prices should also reduce the resistance to future growth. By this reasoning, the trouble won't get too worse as it's not something that can reinforce itself.
The general outlook in emerging markets is still good. Yet, I suspect the decline in commodity markets together with the slowing of housing market in US would trigger a further correction in global equity markets. This may take a few weeks. If so, that would be a good time to buy.
Players in oil, gold and other commodity markets are feared of a global slow down. When the world economy loss momentum, that will also end the interest rate hike. Yet, the decline in energy prices should also reduce the resistance to future growth. By this reasoning, the trouble won't get too worse as it's not something that can reinforce itself.
The general outlook in emerging markets is still good. Yet, I suspect the decline in commodity markets together with the slowing of housing market in US would trigger a further correction in global equity markets. This may take a few weeks. If so, that would be a good time to buy.
# posted by Lobo @ 6:53 AM 
