From The TimesApril 15, 2009
And if it can happen in Singapore...
With more bad economic news out of the city state, the worry is what will happen in more politically unstable Asian countries
David Wighton: Business editor's commentary
They are not talking about green shoots in Singapore, at least not economic ones.
The city state's central bank effectively devalued its currency yesterday as figures showed that the economy shrank by an extraordinary 11.5 per cent in the first quarter compared with a year earlier.
The Government revised its forecast for the full year to a slump of between 6 and 9 per cent.
So successful for so long, Singapore is heavily exposed to sectors hardest hit in the current downturn - finance, shipping and manufacturing. Exports were down 17 per cent in the first quarter.
The very modest devaluation will not help much - at least until export markets pick up - and the authorities will be wary of a bigger depreciation of the currency in case it undermines the confidence of international investors.
Analysts believe the downturn may prompt an exodus of expatriate workers undermining the efforts to encourage immigration and turn Singapore into a finance hub for South East Asia.
The worry is that where Singapore goes, other less politically stable Asian countries may follow.
http://business.timesonline.co.uk/tol/business/columnists/article6094612.ece
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Wednesday 15 April 2009
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment