The Next Big Crash - Are You Prepared?

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We know that the market is overvalued to a certain degree beyond what's normally perceived as "mean". I think - for the long term - it'll be increasingly hard for companies' earnings to outperform consistently, and it'll disappoint analysts. With FED cutting back on stimulus, it represents a difficult task for other countries relying on cheap money. Can China still defy those betting against it - despite its growing debt?

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Now there's new term called Fragile Five: "Turkey, South Africa, Brazil, India, and Indonesia"
http://money.cnn.com/2014/01/30/investin...gile-five/
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Russia Defers Aid to Ukraine, and Unrest Persists
http://www.nytimes.com/2014/01/30/world/....html?_r=0

"Standard & Poor’s, the ratings agency, on Tuesday downgraded Ukraine’s sovereign debt, citing political uncertainty"
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I learnt something new today. I didn't know Ukraine has been reliant on Russia's money. Certainly uncertain times.
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(31-01-2014, 11:48 PM)kelvesy Wrote: We know that the market is overvalued to a certain degree beyond what's normally perceived as "mean". I think - for the long term - it'll be increasingly hard for companies' earnings to outperform consistently, and it'll disappoint analysts. With FED cutting back on stimulus, it represents a difficult task for other countries relying on cheap money. Can China still defy those betting against it - despite its growing debt?

--

Now there's new term called Fragile Five: "Turkey, South Africa, Brazil, India, and Indonesia"
http://money.cnn.com/2014/01/30/investin...gile-five/
---

Russia Defers Aid to Ukraine, and Unrest Persists
http://www.nytimes.com/2014/01/30/world/....html?_r=0

"Standard & Poor’s, the ratings agency, on Tuesday downgraded Ukraine’s sovereign debt, citing political uncertainty"
--

I learnt something new today. I didn't know Ukraine has been reliant on Russia's money. Certainly uncertain times.

For the "Fragile Five", I wonder why no Argentina, but India and Indonesia... timing?
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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(01-02-2014, 11:43 AM)CityFarmer Wrote: For the "Fragile Five", I wonder why no Argentina, but India and Indonesia... timing?

I guess it's the same reason why Brazil was chosen over Argentina. Brazil is relatively more critical to Latin America's overall economy.

India and Indonesia are 'representatives' from Asia.

South Africa is 'representative' from Africa.

Turkey is 'representative' from Europe.

The reason could be geographical. Just my opinion.
My Dividend Investing Blog
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(01-02-2014, 12:14 PM)Dividend Warrior Wrote: For the "Fragile Five", I wonder why no Argentina, but India and Indonesia... timing?

fragile 5 is just the vulnerable ones out of the BRICS+MIST

(BRICS = Brazil, Russia, India, China, South Africa)
(MIST= Mexico, Indonesia, South Korea, Turkey)
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(01-02-2014, 11:43 AM)CityFarmer Wrote:
(31-01-2014, 11:48 PM)kelvesy Wrote: We know that the market is overvalued to a certain degree beyond what's normally perceived as "mean". I think - for the long term - it'll be increasingly hard for companies' earnings to outperform consistently, and it'll disappoint analysts. With FED cutting back on stimulus, it represents a difficult task for other countries relying on cheap money. Can China still defy those betting against it - despite its growing debt?

--

Now there's new term called Fragile Five: "Turkey, South Africa, Brazil, India, and Indonesia"
http://money.cnn.com/2014/01/30/investin...gile-five/
---

Russia Defers Aid to Ukraine, and Unrest Persists
http://www.nytimes.com/2014/01/30/world/....html?_r=0

"Standard & Poor’s, the ratings agency, on Tuesday downgraded Ukraine’s sovereign debt, citing political uncertainty"
--

I learnt something new today. I didn't know Ukraine has been reliant on Russia's money. Certainly uncertain times.

For the "Fragile Five", I wonder why no Argentina, but India and Indonesia... timing?

Why dont they Just call is BIITS, going with the past conventions
Reply
(01-02-2014, 11:43 AM)CityFarmer Wrote: For the "Fragile Five", I wonder why no Argentina, but India and Indonesia... timing?
Argentina is not just "fragile" it's practically broke already Wink
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STI falls below 3000, fear all over the market...
be greedy when others are fearful!
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(03-02-2014, 10:02 AM)felixleong Wrote: STI falls below 3000, fear all over the market...
be greedy when others are fearful!

I would like to see fear.. But key here is theres no fear at the moment (IMO). A slow and painful death is worst than a sudden heart attack.. We may see a new lower low.
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Yes! i agree.
No smell of Black Swan.
And we all know if we boil a frog ever so slowly, it will never knows how it dies.
Is it the truth?
Have anyone carry out this cruel experiment?

But we may be just like the frog in the stock market.
i also prefer the BLACK SWAN, no Mr. Frog.
How about you?
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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I think its very very hard to tell when the market will bottom
most people wouldn't be able to predict the low

for common people like me, every 10% correction would be a good opportunity to accumulate some blue chips
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