Welcome to our Nightmare, Asia
Ugly Americans are nothing new. And, truth be told, neither are ugly domestic markets.
On Tuesday we sneezed, and Wednesday everyone else is catching a cold. It might not be SARS, but is this anyway to make friends?
The sub-par outlook for the U.S. economy will continue into the first half of next year and so the market is focusing on the negatives,'' said Shane Oliver, who helps manage the equivalent of $83 billion at AMP Capital Investors in Sydney. "Resource stocks are often most affected when worries about the U.S. economy come to the fore". Bloomberg
If you can't join em, beat on 'em. The Nikkei is getting spanked. Ditto for most everything else in Asia. Why speak softly when you carry a big subprime stick?
It may be that the U.S. subprime market is not a very big problem but concerned investors may move from risky assets to safer ones,'' said Grace Tam, a Hong Kong-based manager of investment services at JF Asset Management Ltd., which oversees $98 billion in Asia. ``For Asia, we may see liquidity outflows if investors become risk averse.
In this day and age, a lousy condo market in Boca Raton can impact pensioners in Beijing. We have been hearing the Chinese government is putting money to work in North America. Hopefully they won’t get upset with Steve Schwarzman. Based on the way Blackstone (BX-NYSE) is trading, they might be the proud owners of a bridge.
Which can come in handy, particularly if they need to get to Brooklyn.
Asian Stocks Fall From Record on U.S. Housing Concern, Metals
Bloomberg
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned.
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