Why financial markets are not going your trend?

Financial markets are not predictable.

Financial markets are not logical most of the times.

Most would wonder why Asian equity markets plunge while US Dow rallied for a third day or US markets ended mixed.

While

·         China’s ‘good news’ rate cut spooks market from MarketWatch

·         Bernanke Sees Easing Options While Not Specifying Them from Bloomberg

·         Spanish Banks Need $50 Billion: IMF Report from CNBC.....

The rate cut was NOT a surprise. My post on China Making Contingency Plans for a Greek Exit would have pre-empted you that China was on to something! Though missed by many while interpreted with a different mindset would have resulted otherwise.

Bernanke is Bernanke. How well do you read Mr. Bernanke? As in my earlier post, he is a patient strategist. His moves and actions are well supported. My opinion is that his decision to utilise the appropriate tool or tools would be when he has sufficient data to react. Meanwhile the FOMC is not convinced to react given the current financial market. It means there is room to fall.

IMF. Is $50 Billion sufficient?

Markets movements are based on ‘speculations’ and hopes. If speculated wrongly which I believe the current speculation is WRONG, the reality takes control.

In addition, was that a coordinated Central Banks action? Is there volatility? Or is there more uncertainty? What’s going to happen on June 17^th or 18^th?

Why are my posts different from others? My question to the audience is do you see, hear, smell the ‘happenings’ in the financial markets? Do you utilise your senses? Hence, you would be able to TASTE the success in the journey of investing!

Learn and educate yourself at a higher level – above average. Outsource - if you do not have time or if it is not your cup of tea. Doors are always open to queries. Have a great weekend!