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Friday, 8 June 2012

Fool me thrice, shame on whom?


Fool me once, shame on you.

Fool me twice, shame on me.

Fool me thrice, shame on whom?


Markets are funny.

QE1 did not work the first time. After the initial sugar rush, it fizzled out.

Same goes for QE2. Just look at the recent disappointing US jobs numbers.

Yet the markets “rallied” this week based on the hope Sugar Daddy Ben will follow Uncle Kangaroo and Uncle Panda in giving us their soda pop drinks for our sugar rush…

Or perhaps it’s a case of third time’s the charm? 

Guess what? After following the rules and saving for a life time, now the Central Banks around the world are throwing savers and pensioners to the wolves… 

You’re on your own if you are earning negative returns or interest rates after inflation. Good luck to you on learning the ropes of investing at your advanced retirement age, when “investing” up till now was about deciding how long your fixed deposit term should be… (That's why I am a big cheerleader of starting young. Hey boy! I don't mean sex lah!)

But it’s great if you are a risk on speculator or entrepreneur. Cost of money has never been this cheap!  Isn’t the volatility great? A speculator’s greatest fear is a flat and dull market. Just don’t get whip-splashed! 

And we wonder why trading volumes have dwindled in the major stock exchanges from Hong Kong, Singapore, to US?

I’ll wait for the dumb money to return in droves as they always do. 

Wait! 

I am very puzzled why the markets would lend money to US for 10 years at less than 2%... Would you?

But then I am keeping my spare change at our Singapore banks at what interest?

Hey! I am the dumb money!

So I am my own indicator!!!

Lovely ;)


2 comments:

  1. But, the market has been fooling me over and over again. How?

    ReplyDelete
    Replies
    1. You too CW8888?

      LOL!

      At least that makes 2 of us that have the awareness we are not smarter than the market.

      Now Spain asking money from EU is viewed as a good thing by US market Friday?

      Lucky we don't play contra now. If not sure kenna whip-splashed!

      I like what you have blogged in your thought provoking post:

      http://createwealth8888.blogspot.sg/2012/06/magic-of-compounding.html

      We have no choice but to tip-toe back into the market every time we get washed ashore. Fools we are!

      It's better than not to invest in self-help and only focusing on saving with negative yields or believing garmen will take care of us.

      What US and European governments have done is to throw their pensioners into the deep ocean and say if they need a life-jacket, "steal" them from their grandchildren!?

      Our Singapore system is not perfect, but at least we don't burden our next generation. We pay our own way.

      Delete

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