Fed Reform

3/31/08

Major US stock indexes seem end the downtrend which it started 3 days ago with Treasury Head
Paulson announced a New Reform for Federal banks to govern US banks and financial firms.

I want to address common mistakes that investors made. What is the purpose of Trading or Investing? The answer is very simple...to make money and keep it. Do anyone in your lifetime to know almost every mutual funds are copying what market performs?? When stock market is going up for years, so is your mutual funds performance. When stock market is going down for years, so is your mutual funds performance. Therefore, I personally suggest every investors need to learn how to trade properly in trending or consolidating market conditions. How to trade successfully? You need to learn Technical Analysis and hopefully you could find a mentor. You have to take action to change your life and you are the only one who control your vehicle, not your mutual fund manager.

I personally express my concern that US stock has been trading primarily in Bear market trend. US has already in recession no matter how you view. We have the worst housing burst in history, financial crisis since great depression. Do you think it only takes 3 months of stock correction to overcome this mess?? Do not be silly. Last housing downturn took 4 to 5 years to recover. This credit crunch has already posted the thread to our financial system that have not seen in US history. So, if you as investor do not know what to know. Then, I suggest to withdraw all your investment beside C.D. in banks. Cash is consider a trading position and the best I think in these market condition if you are not sure or do not know how to trade in downtrend or sideway market.

This friday market will show us what is next phase of this few months consolidation with downside bias since the most important economic data "non-farm payroll" will be announced.