Tuesday, September 23, 2008

Multi-Level of Bumper

As an investors 15 September 2008 faced a horrible adjustment in the morning. That day I was on leave at home. But the bad news one by one delivered to me. A lot of queries brought to me about this heavy adjustment. I believed they are lost the direction and looking for some support.

Friendly speaking, these adjustments I was foresee in advance (Refer to my previous article) but do not known such heavily. Today, a week past from black Monday. The detail data one by one reported on media. After read and analyst, I found that: -

a) This crisis is a multi level bumper.
b) Six months time from now only can view the actual fundamental value of economic.
c) In the coming six months, Asia Pacific currency rate drop against with USD and reverse will reduce heavily.

I believed every one understand the pyramid direct selling concept. Those corns man use this format to cheat people money. Now, USA’s financial Institution unambiguous used this concept for financial product and indirectly was created a bigger multi level of bond to absorb the cheaper funds for investment. The starting base slightly difference but after roll over of few times of maturity fund. This pyramid direct selling concept auto appearing on every maturity due date. Beginning stage, the higher level people did not aware this and finally no idea to solve it.

It’s because the issue bonds has been involved so many level of bondholder. Finally brings hard to identify it and cover it by way of discussion. While the loan maturity expired, it brings multi level of loan holder appearing in the meeting. Every negotiation becomes complex and difficulty.

But on my own opinion this multi level hard to solve it. But the advance IT equipment will help human to identify it faster. Hence, I identify the actual economic fundamental value will be appearing in the next six months.
Therefore, long-term investors still have enough time to select the right share for investment. Please do not hurry up.

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