By: Derek Lim
STI together with all the entire region tumbled today on worries about the sub-prime situation in the US. However, this problem has been around for some time now and I’m not too worried. My biggest concern is not in the US but in China. We have all been hearing about the increasing number of Chinese people opening trading accounts and splurging their life savings in the stock market, thinking that the government will never allow the market to fall. If for some reason this assurance is taken away, chances are that these people will become panicky and pull out from the market. When that happens, all hell will break lose.
As of now, the DJ is very ‘mix’. I guess short term investors will be very jittery now . We shall see what the market has in stall of us tomorrow.