Last Friday, Dow dropped another 100 plus points. The bad news is one after another. After the strong rebound last year, we are hitting the first speed bump. No one could tell how the market will play out.
1. China cramp down on property speculation. Although in the short term, this has dragged down the market performance, but it is an essential step for China to prevent the price bubble. Some might argue it is already in the bubble stage. I don’t think China government want to kill the growth and market. We just need to cool it down.
2. Greece chaos. It will take sometime for them to find the solution, instead of dragging on the problem
3. Dow plunging 1000 points. Common sense tells us, if the situation is too extreme, it might not be true. Be it computer error or human error. Although confidence shaken, market will take sometime to recover. Read more…