Around the Web: A look at market commentaries

By Reuters Staff
March 5, 2007

The sell-off in stock markets around the world was a wake-up call for investors and a call to action for plenty of students of volatile markets and commentators on the Web. Here’s a selection of some of their views on this market and where it’s going.

How investors respond depends how seasoned they are, argues Market Risk. It’s a buying opportunity for invested with a long horizon and worrisome for those who bought within the last six months.

To others, investors, no matter how seasoned, look rattled. Peter Cohan’s hunch at blogginstocks.com is that “fear is feeding on itself” and “nobody seems to know exactly how big is the global wager on this Yen Carry Trade.” He reckons the Dow Jones industrials could fall 20 percent before ”fear is washed out of the global markets”.

Some are watching the bond markets, which — according to bondknowledge.com — are signalling that the outlook for the U.S. economy is less rosy than the Federal Reserve is currently anticipating. “Dont believe the goldilocks hype (economy is neither too hot nor too colddecent growth with no inflation). Listen to the bond market,” they argue.

Skeptical Speculator says “in a single day, China has reminded everyone that asset markets can be a risky place to be in” but they conclude that the “fundamental conditions have probably not changed dramatically. The large fall in the Chinese stock market is as much due to an over-extended market as anything else”

Comments

As an investor who just reentered the market about a month before the China Dip, it was quite a negative jolt.

I’m still confident that China and India are, in particular, on the way to becoming huge international powers, with China overtaking the United States as the biggest economic power in the world by, say, 2100, perhaps much sooner than that.

The genuine Indian and Chinese GDP growth of nearly 7 to 10 percent, year over year, bodes well for their underlying economies. Equities will gradually adjust to realistically reflect the values of their economies.

Posted by Charles Nethaway | Report as abusive
 

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