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Last week I made a presentation to 200 lawyers from New York at the invitation of Ambassador Ong Keng Yong. My topic was on the Asian stock markets. Here is a summary of that presentation.
My view is that Asia learned its lesson from the Asian Financial Crisis and built stronger banks and stronger national balance sheets which enabled it to weather the Global financial storm well. With countries and Governments introducing fiscal stimulus plans at 2-5% of GDP and up to 10% of their reserves, its not surprising to see GDP growth rebound strongly - but consumption is still relatively weak.
With this back drop, the main question facing investors is when Governments will start raising short term interest rates from near zero levels or when will Governments start cutting back on fiscal stimulus packages which are already straining National balance sheets of OECD but not Asian countries. This is probably what is spooking stock markets now especially in the US and Europe. Read more...[caption id="attachment_3583" align="alignright" width="150" caption="Photo by geishaboy500"][/caption]
Last week I made a presentation to 200 lawyers from New York at the invitation of Ambassador Ong Keng Yong. My topic was on the Asian stock markets. Here is a summary of that presentation.
My view is that Asia learned its lesson from the Asian Financial Crisis and built stronger banks and stronger national balance sheets which enabled it to weather the Global financial storm well. With countries and Governments introducing fiscal stimulus plans at 2-5% of GDP and up to 10% of their reserves, its not surprising to see GDP growth rebound strongly - but consumption is still relatively weak.
With this back drop, the main question facing investors is when Governments will start raising short term interest rates from near zero levels or when will Governments start cutting back on fiscal stimulus packages which are already straining National balance sheets of OECD but not Asian countries. This is probably what is spooking stock markets now especially in the US and Europe. Read more...
[/caption]
Last week I made a presentation to 200 lawyers from New York at the invitation of Ambassador Ong Keng Yong. My topic was on the Asian stock markets. Here is a summary of that presentation.
My view is that Asia learned its lesson from the Asian Financial Crisis and built stronger banks and stronger national balance sheets which enabled it to weather the Global financial storm well. With countries and Governments introducing fiscal stimulus plans at 2-5% of GDP and up to 10% of their reserves, its not surprising to see GDP growth rebound strongly - but consumption is still relatively weak.
With this back drop, the main question facing investors is when Governments will start raising short term interest rates from near zero levels or when will Governments start cutting back on fiscal stimulus packages which are already straining National balance sheets of OECD but not Asian countries. This is probably what is spooking stock markets now especially in the US and Europe. Read more...
