I am afraid the worst was over, and the probability that the stock will start to move
up steadily from here is over 70%. Next Monday, Clinton will held a speech in the United Nation, most likely he will call for an world effort to resolve the worldwide economic problem. On Tuesday, Clinton will meet with the Japanese leader to resolve the Japanese banking problem. Japan's congress just past the Banking reform act at the end of last week. In Asia, couple of countries had implemented restrict
regulation to maintain the stability of local currency, and so far the policy seemed to work. In the US stock market , since last Oct. many stocks had been through a bear market , which means the stock price had corrected more than 50%, and I called it
a bear market, and pretty much it was over, and the short bear market since last October is pretty much at the end.
The political flighting back home:
Well , the worst for Clinton is over, the people already showed their opinion, i.e
It is not necessary for a man to be a good husband to be a good president, i.e a good president may not be a good husband. The release of tape this Monday will not have much impact on the market which had already been factored in . Since all the uncertainity is clear , it is good for the market.
The next thing will be the rate cut, my guess is it may happen before the end of this year. In October, Lu will release the earning, and CEO had already said that LU is comfortable with analysts prediction, I do not think he will lie in public, and I do not think he dare either. INTC, MSFT all will release good earning, and this will help all the high tech stocks move one step forward. |
