Be Prepared For More Thunder Storm...

Just when many people were expecting the worst of the U.S. financial crisis was probably over, another thunder started brewing when U.S. automotive sector requested for a US$25billion bailout package. Finally, the storm arrived yesterday when U.S Congress reacted negatively to the bailout package, followed by Citigroup reported to be in deep financial trouble, whereby Citigroup lost a quarter of its value in one day and Wall Street tumbled more than 5% overnight! Worst still, Dow Jones Industrial Index had overtaken the previous low of 7,882 recorded on 10th Oct 2008 to a low of 7,552, thus pointing to another potential major bear run! Some analysts are expecting the Dow to possibly fall as much as to the level of 6,500!

This could well be another bad news for the rest of global financial markets!

So far we have not quite seen the impact of the crisis trickling down to the other industries but the signs are surely there, starting with the auto sector!

Be prepared for more thunder storms ahead, as more corporate earnings downgrade and fallouts are expected to happen down the road!

On the other hand, Asian markets generally rose today against all odds after the initial knee-jerk reaction to Dow's drop overnight. There were news reported that China may come up with another stimulus package to support its growth. Positive news it may be (if true) but i am afraid the real problem lies else where in the west!