Investor craze over Industrial and Commercial Bank of China’s initial public offering manifests the bubble in global stock markets – the bust can be nasty
Fred Day
Oct. 17, 2006

What has happened over Industrial and Commercial Bank of China’s initial public offering has created warning signal among smart money investors. The craze and frenzy is so severe that the global stock market bubble seems to be bigger than ever. It is alos close to a bust. That kind of frenzy is always followed by a bust that lasta multi-decades.

The closest case of such craze was in NTT DoCoMo IPO in Japan. The 1998 craze ended up in a massive Japanese equity bear market that took the the Nikkei down tens of thousands of points.

Chinese stock market is not open. It is tightly controlled. The effect in Chinese market can be limited. But the real bust will happen in India, South Korea, Taiwan, Europe and US. While the Chinese economy will go through a state of deep depression, the current communist regime will hide it out printing massive levels of currency and lowering the currency in value.

But the manifestation of the massive economic downturn will be evident in US, India, Europe and other Asian countries.

Investor craze over Industrial and Commercial Bank of China’s initial public offering manifests the bubble in global stock markets – the bust can be nasty
Fred Day
The closest case of such craze was in NTT DoCoMo IPO in Japan. The 1998 craze ended up in a massive Japanese equity bear market that took the the Nikkei down tens of thousands of points.
READ MORE>>

More than a trillion dollar Chinese foreign exchange reserve – what does it say for economy, bond and stock market?
Marla Guthrie
The abrupt withdrawal of all the money in the tune of trillions of dollars – a real run is what can happen. The bond market can collapse. The yields all on a sudden can shoot up to 10% or higher. The stocks will crash instantaneously.
READ MORE>>

Slower growth in Euro zone forcing ECB to start thinking about pausing now – what is the effect on gold, dollar, yen and euro?
Sam Adelton
It seems Japan is leading the cycles of economies. They just went through the cycle of deflation. It may be the time for US and Europe. Rest of Asia will be after that.
READ MORE>>

Asian equities show classical top and momentum divergence – North Korean nuke news acts as catalyst
Peter Oberois
The Asian equities are down on North Korean nuke news – North may be preparing for the second test. But the analytical models are saying that can just be an excuse. The smart money has left. The bulk money now is eager to jump out.
READ MORE>>

A recipe for stock market melt down that was eliminated in 1929 is getting ready to be in place – will history repeat?
Joe Weinman
According to some experts, the new rule will be in place by early 2007 and the stocks will speed up and finally bust in a total collapse by end of 2007.
READ MORE>>

Stock option backdating scandal in UnitedHealth much more serious than disclosed – just option re-pricing may not end the story
Marla Guthrie
Chief Executive Officer William McGuire has resigned. But the scandal which brought McGuire enormous amount of wealth is just tip of the iceberg. The stock has lost close to 22% this year. The stock is expected slide heavily in opening in NY.
READ MORE>>

Another tragedy from derivatives trading – Credit Swiss lost $120 million in sale of reverse convertible notes and fixed-income securities tied to stock options
Fred Day
The bank lost money because of its failure from swings in the value of Korean stock options. The Credit Swiss stock may fall on the news. But it may be ideal opportunity to buy the stock.
READ MORE>>

MORE ARTICLES >>