At this time, I don't tink it makez any difference investing in U.S, Asia, or Europe. First of all, the U.S market is not a safe haven, just look at what happen on oct 97 when everyone is dumping all the blue chipper. The same thing can happen again this year and we might see the dow trading as low as 8100, possibly drifting below 7800. Most of the stocks in the dow is overpriced. How can anyone justified buying IBM at $115 or MERCK at $132. The U.S media has been brainwashing everyone into thinking that what you paid now will go higher by the end of the year & go even higher next year. Let's not kid ourself, these stocks is due for a massive fall. You know it! I know it! Sooner or Later, investors will figure out that they bought into a bubble. People will soon see that the emperor has no clothes on.
Stocks is just a piece of paper, the last guy out gets to keep the thousand dollar shit. Let's use the asian market as an example, on
Oct 7, 1997 investors is willing to pay $256.00 for HSBC HOLDINGS and $84.50 for CHEUNG KONG PPT. WHY? because everyone thinks is worth it until the currency crisis hits home. Today, HSBC is $193.00 & cheung kong $40.00 The same thing can happen to u.s, investors is willing to pay $115.00 for IBM because he thinks the price will continue to go up. The media is telling the investors that the dow will go to 10000, the U.S market is a safe haven, until one crisis hits New York and everyone run for the exit. Everyone want to sell their stock but they can't because the computer system crash, they pick up their phone and dial but the line is busy. By the end of the day, all the investors lost their pants.
Asian goes down, the whole world goes down.
U.S CRASH, the whole world CRASH.
European " " "same thing
If U.S market do well, the asian & european markets will usually tag along with it. 1)US STOCKS IS AT ALL TIME HIGH 2)ASIAN MARKETS IS AT ALL TIME LOW 3)EUROPEAN MARKETS IS IN BETWEEN, SOME ARE HIGH & SOME ARE LOW
U decide! |
