Hey Here some updates on the fundamental:
After the natural disaster that happened in Japan, their nuclear reactor are still causing problem. They are still unable to stabilize the reactor temperature which cause the stocks market to be very cautious. The market have recover fully since the tsunami hit Japan, but there are a few factors that are hindering the upmove now.
The few factors are:
1) Europe region are undergoing stress test on their government bonds on April. Countries like Portugal, Ireland, Italy, Greece and Spain (basically the PIIGS). If they do not pass the test, we are going to experience another round of recession. However, my take is, they are too big to fail. The European Union will support them in anyway to let them pass these stress test.
2) Japan nuclear reactor still unstable, which alot of buyer of the market are staying at sideline. Japan being heavily dependent on nuclear power, now have to depend on crude oil to power their country. That cause the demand of crude oil to increase thus increase the price.
So overall, the market do not have any reasons to support the upmove as of now. So i expect the market to pull back alittle before another upmove will come. The upmove could happen on April after the Euro region have succeed in their stress test.
On the bright side:
1) US employment data have significantly improved, and they are on the route and on track to recover. The 'Hard Truth to keep Singapore going' book by MM Lee, have highlighted that US will sure recover, but just a matter of time.
2) China have problems with inflation, which actually is not something to worry about. China have the largest amount of reserve in the world. It is only whether the government want to 'flex their muscle' or not. They have the capability to control the economy of their country. She is also on route to be the number one country of the world in 20 - 30 years time.
3) Asia as a whole will have higher growth in term of GDP than the western countries. As the western side of the world economy recover, Asia would grow faster. Bcos we are the manufacturer and they are the user.
4) Commodities price will be higher as the demand for them is getting larger. As Asia grow more and more wealthy, the usage of commodities would increase. Thus commodities like crude oil, copper, titanium, grains, soft commodities etc will experience a increase in demand thus higher in price.
