15 August 2011

What is the next direction after the U.S. Market Crash Last Week?

In my humble opinion, the market movement will be always volatile, be it in uptrend or downtrend. Western countries are now fighting for the sovereign debt crisis and facing a further drop in currency value, such as U.S. dollar and Euro. In traditional ways, we could see a negative correlation in between Equities and Fix Incomes. However, due to the popularity of alternative investments and derivatives market, we can see that the negative correlation in between Equities and Gold are now obvious as compared to equities and fix incomes.

We do foresee that the current derivatives market are getting more excited as many speculators are returning to the market after last week. So, my prediction or guess is that, this week is going to be more stable as compared to last week. For those investors who wishes to hold for long term, please be prepared for the volatility. I also just realized that most of the speculators are happy with the volatility and trying to make some profit from there.

So, good luck to all of you. I will keep on posting my updates to you guys.

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