Technical Rebound..... or is it?

Human is such suspicious organism. We're skeptical of things we see, feel. Why don't we trust our senses? Afterall, it's how we've evolved. If that is the case, the share market will be a very boring place. People will just buy and sell with honest intentions, and at fair prices too. But, the human factor always preside the prices.

The central banks around the globe (and I really mean most of the countries) had responded to the recent credit crunch and taken actions deemed necessary. The players in the market still hesitate. The West, with all their efforts including huge interest rate cuts, billion-dollars-bail-out-plan, still can't convince the market. It seems like the market was still waiting on something else..... the emerging markets.

The East, especially the emerging markets like China who had survived the slump last decade seems to be in better position now. Some financial institutions are still affected, including DBS in Singapore whose investment products like High Note 2 & 5. Yet, most who's not exposed to the US financial jargon has good foundation, and cleaner ledger. That leads to the general view where the Asian markets will recover sooner than the West.

Hence, the market finally responded when China announced its economic stimulus package. The relevant sectors had gained on the hope that China, who's the major consumer of development will continue to grow. It seems ironic that China who used to depend so much on US consumers now is leading the consumption. Power of the people?

Nevertheless, suspicious human nature is still in play. I wonder how long can this euphoria sustain. And, I'm not the only one. Sir Howard Davies of London School of Economics and Political Science shared the same view in his recent talk.

http://www.straitstimes.com/Breaking%2BNews/Money/Story/STIStory_300640.html

Panicky people making rash decisions. That is what the market is at the moment. Great opportunities in the market, but definately not the faint hearted ones.