Mid-day review on the current market sell-off

Ok, it had been a very chaotic and irrational
trading day following the downgrade by S&P 500
on US credit rating. Regional market are also
feeling the heat, Hang Seng and Shanghai market
is down by about 4% and our beloved STI
is below 2900 points.

I am going to make a bold statement in the blog
and say that, months from now, we will look
back to this day and say "I Should Have.....",
the Chinese equivalent is "早知道". I believe
that the market is over-reacting and the selling
is really over-done.The selling will cool down
and we will once again basking in the sun.
I know that there are all the end-of-the-world
doomsayer reports out there saying that Recession
is coming and something about the Perfect Storm
hitting us soon. Ok, to each his own.

My view is that Yes the US market may continue
to fall in these couple of days and the STI will
follow suit, but it is a GREAT BUYING OPPORTUNITY
at this stage. If and when STI drop to the 27XX region,
it is a WONDERFUL time to pick up the battered stocks.
If you are asking whether I am sticking my head
out this time for making such a blatant statement,
I think I will keep my head intact this time, but I
really don't believe that we are heading down
the cliff on a free-fall. Let's just say that we are
falling now, but we are going to pull the parachute
very soon.

Very simple, is there a chance that the STI will not
drop to the 27xx level, many readers may be thinking.
Yes, possible, anything and everything is possible
but I believe we will see the 27xx even if it is just
a short period.

Please take note that I am just a market participant
like the readers and members reading my blog, and
the views expressed here are purely my own personal
assessment of the market situation and sentiment now.
I don't have a crystal ball from Mr Market and I certainly
don't have a Stock Market Oracle telling me what he/she
sees in the future. Therefore, please take my views
with many pinches of salt and grill my statements
before deciding whether to pump money into the market.