Club Mulgoa

Monday, October 10, 2011

Crazy markets

The volatility is frightening. I have been keeping my dividends handy. I still buy some stocks but I have not been splurging during the recent dips. All the recent causes of the plunge are still there. Government interventions have a dark side to it. You cannot print money forever and debt that cannot be repaid cannot vanish just because central banks have stepped in.

I read this AM that the Chinese government is stepping in to shore up its banking sector. That is ominous. The CCP is good at controlling the freedom of its citizens but dreadful at controlling the rampant property sector.

Where are we heading? Inshallah! But I am only looking for stocks that have plunged hard.

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