18.6.12

Outcome of Greece election



Now that the new democracy has won, there is no more lehman-like incident again..


Although it is not to say that peace will prevail now, i think things are going to get better from here on.


Look at the 3 big regions - U.S., europe and China.


U.S. 


will be undergoing an election soon and the odds of Qe3 or simply put - printing more money - are very high..


Printing money will lead to lower inflation, more exports and $$ for U.S.! And indirectly enable obama to secure another 5 year term..


Europe


A 17 member union holding on to the Euro in which different leaders all have different opinions on how things should be run.


The policies are always slow and ineffective.. And adding to the troubles are many countries requiring bail-outs to survive..


There will never be a short term solution to it and people have gotten used to them.. What people will focus is areas which are growing - China.


China


The funny thing about media is that they always like to say china is having many difficulties and growth is slowing etc..


From what i see, china is blessed with a growth rate those developed countries like U.S. and europe can only dream of!


They have also a centralised govt with huge surplus of money and they are able to boost the economy when the economy turns sour...


Conclusion


I therefore believe that stock markets are cheap now and we should focus on investing in undervalued stocks rather than worrying about this and that.. Which is part n parcel of investing :)





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