Monday, September 13, 2010

Fast September update

It is funny how the markets are rising not because firms outperform expectation but rather did not do as bad as expected. China data seems too good to be true, despite the huge dangling municipal loans for massive infrastructure expansion .

Todays newspaper article on the new China's generation "P" or plastic people - to define a new generation of young workforce who work like robots routinely and  have no ideals or goals in life. Well, coupled with low wages and a very skewed gender ratio, wide rich poor gap and not to mention vast lands subjected to natural destruction will prove to be a headache for the nation.

Lastly, my apologies for the skimpy updates, I had some technical glitches with a failed hardware as well as also some miscellaneous urgent matters to attend to. I have some ideas on hand and will write promptly if they are good.

I still believe that markets are overvalued to a certain extent. The main core problems still exist in PIIGS. So is the massive leverage and unemployment issue in US. Now Japan is also under watch for the huge pension claims, rising Yen and dilemma of whether to apply a loose monetory policy. China is again trying to cool the market with measures to curb the residential property funding - with lock in of pre development sales cash in escrow. What a macro market it has been, And the debate between inflation and deflation. I dont see why both cannot happen at the same time. Just look at Japan.

Have a good week ahead.