Economic Truths We Recently Learned

We have to remember that we are part of a bigger economy that is why we should do our best to learn everything we can about our economy and the economies surrounding us. For the past months, there were many economic events that lead to upheaval.

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Here are some of the truths we recently learned from these upheavals:

  • China’s stock market: Not all Singaporeans know that in July, China’s stock market fell 30%. There were many measures infused by the Chinese government like the suspension of stock counters. Analysts were divided in determining the path of the Chinese stock market.

In fact, some people think that no investment strategy is guaranteed to work here because of extensive intervention of the government and mass hysteria. This event can be compared betting in a casino – luck will control the outcome of the bet.

  • Life goes on after the Greek drama: Although newspapers around the world created headlines about the financial situation of Greece, truth is, after couple of days, life goes on. Investors were more interested of the plummeting Shanghai Stock exchange.

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  • Companies in the West are doing fine: Despite the difficulties in China and Greece, apparently Western companies are doing fine. American and European companies are continuing their economic recovery.

 

  • South East Asia economies are in danger: There are still countries that haven’t learned their lesson following the 1997 Asian currency crisis. South East Asia economies are in danger now because of the weakening exports to China not to mention the falling of commodity prices. The region might encounter a crisis especially with the rising debt values and trade revenues.

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