I believe Direct-through Train from Mainland China before New Year
Mr. Market believed that all Chinese in Mainland China would be permitted to freely transmit their personal capitals outside China to invest in stocks listed on the Hong Kong Stock Casino. He was advised that this was the so-called "direct-through train" scheme that lifted the Hong Kong stock casino to 31,000 points in 2007 and that the scheme must be implemented between Christmas 07 and Chinese New Year.I believe the worst of the subprime mortgage and credit crises are behind us
Mr. Market believed that the worst was behind us and he started buying financials since January. He did not know that Standard Chartered Bank decided to cancel the rescue of a SIV, Whistlejacket. He did not know that inflation in US was becoming so serious that the Fed would not be able to cut rates further. He did not know that many banks in Asia are still hit by the subprime crisis and he was not aware of the recent announcement of the results of the Bank of East Asia.I believe China's stock market will climb up another 100% before the Beijing Olympic Games
Mr. Market said he didn't care whether the US slowdown or recession would cause growth risk in China and other Asian countries. He didn't care whether bubbles were flying in China's stock and real estate markets. He believed that everyone like him was in a state of euphoria, mania, estacsy,...before the BJ Olympic Games and so the stock and real estate markets in China must go up and up until after the Beijing Olympic Games. He didn't care about the macroeconomic measures of our Central Government and he didn't seem to have noticed the severe damages caused by the recent snow in China. In short, he didn't care about anything!I believe the problem of inflation does not exist
Inflation is virtually non-existent, to Mr. Market. He didn't know that crude oil has gone over USD100/barrel. He didn't know that prices of agricultural commodities are at record high. He didn't know that prices of fuel, food, transports, rent,...are all going up. Why? He heard what the Fed had told us: inflation is not a risk.If you don't believe the above, you are stupid and naive
Mr. Market laughs at me and says, "You won't be so stupid or naive as not to believe what I believe." Yes, I am very stupid and naive and that's why I have cut my losses and taken profits a few months ago.
1 comment:
If you have ever believed any of the above, then you are not only stupid and naive but also intellectually disabled!
None of the stupid beliefs can become true. Indeed, they now stand up as some of the most dangerous traps that investors can get into. Nothing but propaganda to enable speculators and Wall Street devils to boost stock prices and get your money from speculations!
But you know almost everyone I talked to in Feb 2008 believed such propaganda. Once again, the story of "The Emperor's New Cloth" becomes timeless and universal!
So if you hear any such propaganda or rumors of similar nature, please be a little wiser this time.
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