Some Comments On Earlier Posting

Got the following comments on the posting: iCapital Comments On Shanghai SSE

• Ooi Beng Hooi said...
  
  From what I read, TTB didn’t mean that in every case after correction, the market should move up. Did he say so? He was referring particularly to Shanghai market in current situation. He was expecting Shanghai market to go up after correction.“
  
  And if so, isn't this a speculative market?” Did he say the market was not speculative?
  
  “bear market is highly unlikely and a repeat of the 2005-2007 bull market is also unlikely.” What wrong with this statement? I interpret it as the market will go up but not as fierce as the previous one. What is so confusing and deep to understand?“
  
  Is iCapital telling that there is absolutely no justification for the SSE to plunge in 2008????” I read it as the plunge is too deep, over-reacted. Don't you think so? If not, how the market rebounded 100%?

Many thanks for your comments. Let me try to explain my flawed posting. :)

• From what I read, TTB didn’t mean that in every case after correction, the market should move up. Did he say so? He was referring particularly to Shanghai market in current situation. He was expecting Shanghai market to go up after correction.“

Ahh.. I was ONLY posting on iCapital's comments on SSE market which was posted on Star Business. ( source: http://biz.thestar.com.my/news/story.asp?file=/2009/9/3/business/4639658&sec=business )

The third last passage. Quote: "Once the current correction is over, the rally in Shanghai will resume."

Well, how would one interpret that statement?

Allow to repeat what I wrote.

Well let's see.
If market correction is over what could happen?
Hmmm... it could either go up or it go sideways.
And some actually do define a market that moves sideways after a plunge as a phase of market correction.
Hence, by logical reasoning, it's a no brainer (for some) that once the market correction is over, then logically the market should move up.

Fault me if you want, but in my flawed opinion, I always believe that once ANY market correction is over, the market should then move up.

• “bear market is highly unlikely and a repeat of the 2005-2007 bull market is also unlikely.” What wrong with this statement? I interpret it as the market will go up but not as fierce as the previous one. What is so confusing and deep to understand?“

Oh. That's nothing wrong with the statement but I like yours so much better because I can understand exactly what your wrote. "The market could go up but not as fierce as the previous one."

That would have been not so deep and not so confusing for me to understand.

Well.. fault me if you want for the lack of understanding. :)

• “Is iCapital telling that there is absolutely no justification for the SSE to plunge in 2008????” I read it as the plunge is too deep, over-reacted. Don't you think so? If not, how the market rebounded 100%?

Well how about you ask them since I do not know. :)

In their own words from the very last passage, the first few words read..

• Given the steep and irrational plunge in 2008.............

I don't know lah but was the plunge in 2008 irrational?