The Thermometer of the Global Economy - Stock Markets

Personal random thoughts -

Sorry folks, I've been delayed by not a few days from my scheduled posting date. Been rather busy and had to prioritize them over my blog... unfortunately.

I did, however, before this respite of time, manage to write a piece of fiction, just to rescue my sanity.

I've also added a new search feature to this site care of Google. Do tell me if it's useful or it needs more tweaking.

Important Philippine business news -

AIG plans to sell its Philippine unit Philamlife

Philippine Stock Market UP (yes, you read that right) for the third quarter unlike other Southeast Asian bourses. (Sorry no link, I just saw it on CNBC last week). Strength? Looks like it.

HK Securities, a local stockbrokerage despite its name, is going to be taken over by the PSE

On to our blog entry -

Stock markets worldwide plummet because of growing recession fears

As I am blogging, the DOW is down by triple digits, and and has fallen the 10,000 mark. The passing of the bailout package has become a classic case of sell on news for traders. I guess passing it was just to delay the inevitable path of the DOW to 8000.

I can only imagine the bloodshed in tomorrow's local market. (Shaking my head). This has been a tough year for people trading the stock market. The stock market is no longer a barometer. It's now a thermometer. It's a thermometer for sick stock traders, economists, investors and every other individual. All of whom are clueless and helpless... sick from the avalanche of negative news.

The thermometer has yet to reach typhoid fever levels, but with banks falling like dominoes, there is a lingering question, who's next? Stock markets, and obviously even us regular folks, don't like uncertainty. Until all these bad news are accounted for, we'll be seeing a sea of red for the weeks ahead.

The things to look out for right now are if other businesses are also affected. Right now, bulk of the problems everywhere are in the financial sector. The problem is when banks start folding up, businesses will have difficulty accessing credit to fund their expansion. This simple concept is packaged in a term called credit squeeze.

Right now, I don't and can't offer any piece of positive news. Hold on to your butts and cash. And if you're brave enough, you can still put money into INVESTING. Those who made the right investments during the fallout of the Asian financial crisis are happy now. Who knows, these crazy and panicky times could provide an ample opportunity for the shrewd investor out there.

I'm not recommending any Philippine stock though. Not yet anyways. But there is one thing I might suggest. And that is gold.