The above post was just released from CNBC. It discusses a call for contingency plans from the China authorities for a possible Greek exit.
As you probably know, news providers are eager to broadcast the latest news. There are times when they do not verify the source of information. Do you recall the Spain-IMF rescue which was later denied?
Whichever, we too, have a contingency plan.
If the above is true, how would this relate to ‘global investors call for coordinated Central Bank intervention’? The pieces of the jigsaw puzzle does not add up!
· Would China participate with Central Banks for a coordinated Central Bank intervention?
· If no, why not?
· If China were too, wouldn’t the stock market rally? If yes, why would there still be a call for a contingency plan?
· It’s possible; there may not be a coordinated Central Bank intervention before June 17th.
· If it were to happen, then the call for a contingency plan cautions any market rally as it may be short lived. Hence, be very careful for (many) multiple bull traps following rallies.
The discussion goes on...
The above is just part of my daily process, monitoring financial markets and putting pieces together. I am not sure if it would help you but we need to contribute and put our brains together such that Singapore investors are not suckered into bull rallies and lose their hard earned savings.
As usual, the above are my personal opinions and do not demonstrate any form of advice or recommendation. And if you find the above interesting, please remember to add me, like me or forward the article to your friends. Otherwise, I would assume that these posts do not add any value to the audience and hence I would put my effort in better areas of interest.
I would monitor the above 'news' closely and if were true than it would affect the current strategy in place. That is how important it is to monitor global news constantly, interpret what it means and to verify if the news sounds logical or otherwise.
Have a great week ahead!
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