The "Chinese Tsunami"

[isuzu]

Just saw on TV that the Chinese stock market dropped 9%, the biggest since the death of Deng Xiao Ping. The reason for the drop in stocks was speculations that the Chinese government will announce austerity measures that would significantly slow down growth.

Dow Jones opened amid jitters of what was already happening in China and lost 400 points. This was aggravated by a "glitch" in the computers used in trading. The Toronto Stock Exchange lost 360 points. Oil wasn't affected, though. Analysts say that the "correction" was long overdue, and would linger for a "couple of days." Even former Federal Reserve Chairman Alan Greenspan hinted of a possible recession in the US. I hope not.

I wonder how this would affect the stocks in the Philippines.

[revo]

Probably not a whole lot.

[cznayr]

Actually it will... just like what Thailand did in 1997.. right now PSEindes is down by 7%

[Vault Keeper]

So mga sir, is this the best time to buy? Kung temporary lang, then short term, once "corrections" are done, mag up ba ulit? How long will our local market react to such "correction" glitch?

[antediluvianist]

Bought Ayala Land today ( dropped from recent P17.75 - P17 range to low of P14.50 today , then recovered to 15.50, closed today at 15.25.) Blue chips are good bargains in a big downturn like this.

Keeping some cash in reserve - market could be soft for some days yet, there may be better bargains.

[revo]

Everywhere except China will recover. No problem.

[bulm540]

They are calling it the shanghai flu. hopefully it will be contained. Wall Street has rebounded.