Are Asia Pacific equities impotent?

I think so! One of the main causes of male impotency is distraction, mindset, worries, etc.

The mindset of Asia Pac focused on Europe debt crisis is certainly distracting the better economic data coming out of the US. For most of Wednesday, the 10 year Italian debt was hovering above the 7% unsustainable figure. With the exception for a short duration when ECB were rumored buying Italian bonds, the Italian 10 year debt dipped below 7%.

US data for Wednesday was pretty good again. CPI for October came in lower than expected allowing the Feds to have more foreplay of their tools available. While economist were predicting a 0.4% rise in industrial production, the economy was getting steamed up with a gain of 0.7% far better than what economist predicted. In addition, the US homebuilder’s confidence rose to the highest level since May 2010. (The US market is certainly not distracted).

It is evident that Asia Pacific’s psychological mindset had been too focused on Europe (Greece, Italy, and Spain) and the yield of Italian 10 year bonds. Imo, I can feel that the Asia Pacific investors are tired and drained by the excessive volatility over this period of time.

·         Do we need Brands’ Essence to strengthen and prolong the Asia Pac positive mindset?

·         What would be the Viagra (catalyst) needed to get the equities market up? And sustainable?

·         When is Europe coming out with the EFSF and bank recapitalization literature?

·         Would US and/or China spring a surprise or two?

The Americas is certainly not impotent! Are Asia Pacific equities impotent?


At close on Wednesday, US markets closed lower from a Fitch report on exposure of US banks on Europe crisis. This doesn't look favorable. What are Asian banks' exposure to Europe crisis will determine the Asian market for the week.