Author: lioneltan

For some reason or other, the research analysts from CIMB were exceedingly bearish compared to the analysts from the other banks and brokers. Wonder if they know something that the rest don’t? Just check out the number of Neutral or Underperform calls that they made last week.

Well, that’s a FLA (Four-Letter-Acronym) that came in vogue some time last year to represent “Too Big To Fail”. It was used particularly in the context of the TARP (another FLA: “Troubled Assets Relief Programme) coming into play for AIG because it was deemed its failure will have a cascading effect on the rest of the American — and possibly world — economy.

Now we have TBTF standing for “Too Big To Fall” as well. This article from Bloomberg is an interesting read on how the punishments can be disproportionate to the magnitude of the wrongdoing.

Directors in listed companies should be held to higher standards as they are responsible not only for the welfare of their staff and the company, but they are supposed to consider the interests of investors. Let’s hope that SGX-listed companies clean up their acts as there have been more than a few dodgy directors exposed in the media lately…

Wonder if any index funds based on the Philippine Stock Exchanges benchmark index will be able to claim any losses? Then again, I’m not sure if there are any pure index plays based on their markets…

http://www.businesstimes.com.sg/sub/news/story/0,4574,396706,00.html?

The Philippine Stock Exchange yesterday rolled out a new trading system that quickly plunged the market into disarray with wildly wrong data.

It took the bourse more than three hours after the close of trading to issue the correct figure for the benchmark index, after officials told investors to disregard the whooping 14 per cent gain erroneously calculated by the new system.

The coming week, and possibly the next few weeks will be marked by mayhem in the stock markets as investors veer between joy and horror within short spaces of time due to the earnings season.

Fundamentals (and possibly common sense) are thrown out the window as fear rules the markets. Alcoa, who led the earnings season with favourable figures, is also being dragged down now even though nothing fundamentally has changed about it the last few days when it first rallied after good earnings reports!

Unless you have a good appetite for risk, it may be wise for you and your money to stay out for now or take small positions…