Far Eastern Drama

In recent years, tens of millions of citizens of China, India, Korea, and other Pacific Rim nations of the Far East, have been exposed to the speculative face of Capitalism, in the guise of  stock speculation, and locally trading financial  markets.

These new “Investors”, are totally unsophisticated in the workings of stock trading markets, and have looked upon these vehicles, as a form of speculation , and have created an unwitting  frenzy of excess.

Prices of local Chinese or Indian companies as reflected by the stock averages in those Countries , during the past few years,  has been inflated beyond reason and sanity.

On paper, millions of these people have created , vast wealth, beyond their wildest hopes and dreams, by “PLAYING” The Market!!!

I can just picture a multitude of Chinese or other new capitalist citizens of the World, getting up every morning, and running to their newspaper, or other method of stock pricing, seeing that their value of shares has gone “up”, and rejoicing in their new found wealth and a method of “safe” gambling which seemed to guarantee only increased wealth. What a great way to gamble, much more profitable and a sure thing besides.

Enter reality: Unfortunately, Wall Street is not a one way street.Prices and wealth do not always go in one direction.  The Herd psychology has been rampant for 4-5 years. The value of real estate, securities, and commodities  was going up ,up, up, and “they” said that anyone who missed the ride was a fool. The opposite is true, as the markets drop. drop, drop, “they”  say it will never end…

I’ve always said, ” what do ‘they’ know? And by the way, who are They?”

It is almost 4 p.m. 1/23/08, the market has roard back from -300 to presently + 250. This type of volatility is a bad sign of speculation and gambling desperation.  If it were my money, or my sister looking for advice, I would tell her not to trade, but either sit tight, or sell. The worst is yet to come…I’m very sorry to say…

10 p m ,,A 600 + swing intra day trading, an almost all time record..too wild too much. The markets need to stabalize,  This was a Bull  rally in a heavy bear market, fueled by short covering of day traders…Please be cautious and very careful for the next quarter or two or three or… just be cool .

Not trying to be a pessimist, just a friend

Leave a Reply

You must be logged in to post a comment.