US could end year on positive note once all the bad news is out; Asian stocks to follow suit 'Once the bad news, primarily about the write-downs of major banks hit by the sub-prime crisis, is deemed to be largely in the open, some certainty will return to the markets,' said the Frankfurt-based Mr Martini, who was in Singapore last week to meet his staff.
He expects the US market to recover in the second half of the year once the effect of interest rate cuts and tax concessions kicks in to boost the US economy.
Although Asian equity markets could still suffer swings, he added, their long-term growth story is attractive.
But HEY LOOK, he qualified his statement which meant that hell! What he said, isn't worth anything! Could he be thinking Asians are dumb just because sovereign wealth funds are bleeding from their investments? Well, the rest of us ain't and the rest of asia wouldn't be moping up their stocks.
Then Straitstimes ran another story the next day...
15th April headline
Worst of US sub-prime crisis not over yet
THE worst of the United States subprime credit crisis is not yet over with more write-downs expected, said a Singapore-based structured debt expert from Standard Bank.
Mr John Pang, Standard Bank's head of securitisation and cash flow lending in Asia, said after a seminar in Singapore: 'The subprime borrower tends to be a lower-end earner. Thus, when the economy goes bad, there'll be more negative effect on him.
'People want to pay their mortgages, but they may not have the means if the economy goes bad and they lose jobs.'
'The worst is not over, based on market talk and the potential US portfolio. With more uncertainties, I think there're more write-downs to come,' he said.
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Well, in case Mr. Martini hasn't noticed, 2nd half of 2008 is just 2 months away.
Anyone in the right mind wouldn't believe that the US economy would give a V shape recovery would it?
Moral of the story? Don't bet on newspaper reports, do your own research and cross your fingers you have made the right choice!
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