What is the future like ?
November 28th, 2008 | by winsonlee |
Guess what I read in the newsletter from Daily Reckoning Australia ? Someone actually wrote to them asking the definition for Depression and Recession. The definition for recession is fairly simple. A country faces two negative quarters of growth is consider as in recession.
How does Daily Reckoning Australia define Recession and Depression ?
According to them a recession is when your neighbor loses his job. A depression is when you lose yours.
All my friends who are working in Singapore, Malaysia and Australia, I do hope that you do not need to come to come across the definition of recession As long as you are still working, the term and definition will not be important to you as it has no effect towards your life. Although Singapore has officially declared recession beginning of October, but as long as your job is secured and intact, recession will only hit your country but not your life. Indirectly this means that there are more opportunity is created due to this recession. As long as you have income coming in and place your income into correct opportunity accordingly, these opportunity will turn into a success in the future.
The ASX200 has rebound from 3200 to 3650. Will this rally last ? Is this the beginning or it is just the start of the slide ? Most of the company in Australia financial report is only out twice a year. As on financial year end 2008, financial situation for commodities company like BHP, Rio Tinto, Bluescope Steel, Woodside, OZ mineral is still very optimistic as commodity price peak on June. You will only know how bad a company is performing when the financial report for the this half year is out.
Along the way I do admit that I did many mistake that I shold have avoided. But every mistake is a learning curve. Many would have given up according to the current situation. For me when comes to achieveing things I want in life, I can be very persistent. To get into the market is simple. To survive in the market especually during such situation is extremely difficult. For those who think that you are able to make money easily out from the market, you maybe abit too naive. I failed… not once.. but more then once. Many in my situation would have given up long ago. I pay for my lesson and these lesson is not cheap. What i mean lesson is not through seminar or talk but actually experiencing it in the market. Three weeks ago you would thought that Westpac is cheap at $18.50. But when you know that it has reach a new low which is $14.59, then price during then is no longer cheap. Shares like RIO and BHP appears to be rather attractive now. But at what price you would want to pick these shares to minimize your downside is really depends on patience you are.
RBA gonna have another interest rate cut on next tuesday ( 2 december 2008 ). Will it be another suprise for the public who owns a mortgage ? Will the bank rally because of this cut ? This question will only be answered when the day arrive.
GOOD LUCK for those who are investing!!!
And all the best for those who are expecting a cut to ease your mortgage.
