Thank you for your valuable sharing!

Personally, I am not as positive as you are, I forsee S&P 500 to further drop to around 850-900 range before it stage a good rally round Nov, Dec 2010. I do not think it will go below its March 2009, it will spell very big trouble if it does, let’s cross our finger. I expect the US$ to further decline for the next 2 years, who knows, it may just lose its status as the world’s reserve currency one day. As a result, gold & silver should increase in value during this volatile period.

Cheers

To your Dream,
Derick Tan
“Dreampreneur” – Engineer Your Dream. Be an Entrepreneur.

Thanks for your post once again. I don’t think we are in the 2nd tsumani just yet. Anyways I think the 7 points you mentioned are valid, but when you say that US sales are catering, I think the language is pretty bearish, and scary. I provide some points for the aversion of another Tsunami:

1. Growth rate of Consumer spending has flattened, rather than crathered. It has dipped abit but is still above last year’s lows (unless the stock market is projecting a dip in the coming months ahead)

2. California’s real estate seems to be picking up

3. I do not understand how China is doing badly when it has a growth rate above 8%.

4. Microsoft’s sales exceeded $1 billion.

5. Warren Buffet is bullish on housing prices in America.

6. US dollar downtrend seems to be continuing again.

I believe with earnings coming out soon in the next few weeks to months, stock markets are going to continue rallying again.

However, I am not an extreme bull either because

1. P/E are not cheap
2. Sovereign debts are high (concur with Derick)
3. US high unemployment rate will be a damper for stocks moving forward

As such, I think the S&P will try to stagger forward with a goal of touching 1150-1300 for the remaining half of this year. I do not think we will see new lows as yet as the resistance of S&P 1050 seems to be holding very strong despite a close below it this month.

Pls take note: I DID NOT do any recommendation, whatever I had shared is ONLY for educational purpose only. If u need any any advise/recommendation, pls talk to your remisier/dealer/financial advisor. Pls read the disclaimer at the end of my post carefully. Thank you.

In my humble opinion, and I have to admit that I am always wrong, I think the stock market will decline further before it experience some meaningful rebound around end of 2010. I believe the mentors are already revising the S2 entry and exit strategy during the mentor clincs, pls visit the weekly mentor clinics to do your revision. Alternatively, u can also go through a recourse or crash course to do your revision.

Cheers

To your Dream,
Derick Tan
“Dreampreneur” – Engineer Your Dream. Be an Entrepreneur.

Can T3b revise the short selling method. Cheers!
Thanks.

Rgds
Ken

You are very humble saying that you are always wrong. That’s not true at all because I strongly believe you are right much more often than wrong. But yeah, when it comes to future economy (be it near or far future), nobody can claim to be absolutely right. Even great guys with excellent economy knowledge like Alan Greenspan, Ben Bernanke, Larry Summers, Timothy Geithner made mistakes seeing the future last time. But anyway, your opinion makes sense, and I highly value it. Let’s see what will happen to world economy next.

I have been visiting your site for several months and enjoyed the topics you posted. Keep sharing, Derick. Two thumbs up to your topics picking. God bless you, and cheers!

Personally, I am positive about Renminbi and Asia stock markets, especially China, India, Indonesia, Vietnam…etc. over the long term. Economic power has shifted from the West to the East, which is very good news for us Asians. I do NOT think we have seen the end of the devaluation of US$, I expect to see it decline further down the road even though it may have rallied recently. We got to understnd that US$ rebounded recently because of the big drop in Euro, it is NOT because that the US$ is strong. Whoever say US$ is strong and it is a safe heaven simply does not understand the HUGE debt problems that U.S. has. So even though China/HK maybe going through some rough time now, I believe they will rebound later on and they are great markets to be in. Taiwan market will be able to benefit further from the ECFA as well

What I have written above is just my personal opinion, I have to admit that I am always wrong, so pls take it with a pinch of salt

Take care, empty-cup. Cheers

To your Dream,
Derick Tan
“Dreampreneur” – Engineer Your Dream. Be an Entrepreneur.