Awaiting A Digital Outcome
Down to the wire on this balmy public holiday in Singapore and the world is sitting on edge.
It’s the Reuters article this morning that is giving the markets a boost, that a deal will be reached for a 3-4 month extension for the US government and the debt ceiling. Yes, kicking the can again for the sake of our poor nerves. Each time, the stock markets will rally and forget about all the other problems of the world.
Markets are reading smiles now. Just Reid and McConnell both smiled when they gave their statements, which is a good sign ! and a good enough reason for Dow to reverse a 100 point down to close up 60 points and possibly another big leg up when the deal is announced just for spite.
Meanwhile the markets have pommeled bears into submission and there is no safe haven left except equities – US or European or maybe, JP Morgan shares because they are too big to fail (TBTF) in that their earnings managed to drag down the entire S&P 500 earnings growth rate by 2%. I would crown them as the ultimate safe haven for that.
Do note Gold has become taboo because the regulators from US to Europe are only investigating currency(not gold) manipulation. Can we really blame them when it has been market practice for eons when they take out the option expiries and stop levels ? Maybe Oei Hong Leong can use some of this for his lawsuit against Goldman this time ? As for small traders who had suffered, pity.
We have another few hours to await the digital outcome from Congress – default or no default.
Somehow I just cannot shake off that feeling that we are going to see film credits flash and Steven Spielberg coming out to say he directed the whole thing.