Fool me twice, shame on me.
Fool me thrice, shame on whom?
Markets are funny.
QE1 did not work the first time. After the initial sugar rush, it fizzled out.
Same goes for QE2. Just look at the recent disappointing US jobs numbers.
Yet the markets “rallied” this week based on the hope Sugar Daddy Ben will follow Uncle Kangaroo and Uncle Panda in giving us their soda pop drinks for our sugar rush…
Or perhaps it’s a case of third time’s the charm?
Guess what? After following the rules and saving for a life time, now the Central Banks around the world are throwing savers and pensioners to the wolves…
You’re on your own if you are earning negative returns or interest rates after inflation. Good luck to you on learning the ropes of investing at your advanced retirement age, when “investing” up till now was about deciding how long your fixed deposit term should be… (That's why I am a big cheerleader of starting young. Hey boy! I don't mean sex lah!)
But it’s great if you are a risk on speculator or entrepreneur. Cost of money has never been this cheap! Isn’t the volatility great? A speculator’s greatest fear is a flat and dull market. Just don’t get whip-splashed!
And we wonder why trading volumes have dwindled in the major stock exchanges from Hong Kong, Singapore, to US?
I’ll wait for the dumb money to return in droves as they always do.
Wait!
I am very puzzled why the markets would lend money to US for 10 years at less than 2%... Would you?
But then I am keeping my spare change at our Singapore banks at what interest?
Hey! I am the dumb money!
So I am my own indicator!!!
Lovely ;)
Singapore Man of Leisure (welcome to my blog; just google it!)
