This is just my perspective. It is my prediction.

I predicted earlier that the politicians in America will compromise and raise the debt ceiling. That prediction was correct. The global stock market had rebounded.

My next prediction is that the US Federal Reserve will lower interest rate. They will do it to save the American banks from further collapse, and to save the financial system from a collapse caused by the fall in the values of bonds, real estate, stocks.

When that happens, the global stock market will rebound further. Lower interest rate is good for stocks, bonds and for real estate.

When interest rates are reduced while inflation remain high, it means that the ordinary people will continue to suffer a drop in their standard of living. It is like a hidden tax on ordinary people.

This is not fair to ordinary people. It is not a desirable outcome. But I guess that the political and economic system will move in this direction.

I continue to be fully invested during this uncertain times.

Anyway, this is just my prediction. I may be wrong. But I think I will be right, again.

Tan Kin Lian