Wednesday, May 23, 2007
what will happen if 100 idiots and 1 genius met together...?
Former Federal Reserve Chairman Alan Greenspan said he was concerned Chinese stocks might undergo a ``dramatic contraction'' after its main stock index jumped more than 90 percent this year. The benchmark CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, rose to a record 3938.95 today. The index more than doubled last year as investors bet corporate profits would be boosted by the world's fastest-growing major economy. ``It is clearly unsustainable,'' Greenspan told a conference in Madrid today by satellite. ``There is going to be a dramatic contraction at some point.'' China last week increased the amount it lets the yuan move against the dollar and raised interest rates to restrain economic growth and a swelling trade surplus. The changes came ahead of two days of meetings in Washington between Treasury Secretary Henry Paulson and his Chinese counterpart, Vice Premier Wu Yi, aimed at smoothing trade frictions.
Greenspan's comments contributed to the first decline in U.S. stocks in four days. The Dow Jones Industrial Average dropped 14.30, or 0.1 percent, to 13,525.65 after earlier reaching a record. Chinese stocks also declined in U.S. trading. ``The strength of the Chinese market has kind of spilled over into the positive sentiment here in the U.S.,'' said Michael James, senior equity trader at Wedbush Morgan Securities in Los Angeles. ``To have someone like Chairman Greenspan calling for a dramatic contraction in the Chinese markets might have made a few people a little nervous.''
What if u holding alots of overseas' Shares and met with market crash ?
1. Panic and fainted
2. Still steady and buy more to average your cost
3. follow the majority to cut loss
any others idea...?
When 1 people said the market is toppish then it might be not true, but what if everybody said the same again and again to you ?