Lim Boh Soon, chief executive officer of Kuwait Finance House in Singapore said at the Reuters Wealth Management Summit that he sees the period of downturn in the global economy lasting 18-24 months.
However, he thinks the market sell-off over the past two weeks has thrown up good value and said the Middle Eastern bank will look to raise up to $600 million for three Asia-focused funds next year. Kuwait Finance House is the Gulf third-largest lender.
What do you make of Lim’s assessment on the global economy? Do you think it is a good idea to start buying into the market?
Click here and hear to listen on Lim’s assessment of the global economy.
One comment so far
The fundamental reason to buy a stock is for the return on equity being earned by the company. With projected earnings for at least the next 12 months going down for just about every business, why would anyone buy any stock now ? Several analysts have stated that companies, like autos, are undervalued given the book value of their assets.. but how much is an assembly plant realy worth if no one is buying the cars that it makes or it is closed down.. there are still many vacant mill buildings here in New England that were last occuppied decades ago. Too many investsors ignor history. The stock market in the depression did not hit its low until 1933… not 1929 and did not fully recover until 1952. I will buy back in when their is a clear sign that a companys return on equity will head back up in the near term.
- Posted by rick