When Israel moved into South Lebanon in 2006, oil price increased and share markets were slightly muted.The markets have been rallying recently. A point to note is that the turnover volume of trades is still very small, which means there are fewer participants in the stock market. When there are fewer participants, it means prices can be easily controlled by market manipulators. So can this rally sustain?
Anyway, seems like even if OPEC is not able to revive the oil prices, a war can always help. Higher oil prices lead to higher expenses in this environment when demand is decreasing, leading to lower profit margin. Sounds just bad for certain companies?
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Rule of gravity always apply but the feel good sentiment prevail in beginning of year, as usual.
ReplyDeleteThe rally probably still can run for few more days, if failed to last till CNY.
Hi Invest SGX,
ReplyDeleteyeah....agreed. Waiting at the sidelines now =)
any1 investing in Spore's CB?
ReplyDeletethe Spore's CB had risen in this few days. so any comments on that? i think i should not chase after it right? i should wait for the cb to drop after CNY?
ReplyDeleteHi Lawrence,
ReplyDeleteCB = corporate bonds?
Not investing in bonds actually =)