It’s 31st Oct, it’s Halloween, it is also the month-end rebalancing. SO? Sell bonds to rebalance portfolio–> buying stocks. Stock rise is a must. THEN? Stock goes down again!
Second last day of a month is the index future settlement date in HK, a sudden rise at the end would clear most future traders, warrant players’ pocket.
Once financial crisis starts, the direct impact is on the financial market; Lehman Brother gave the first hit, lenders are affected immediately, then general market is short in liquidity, banks, one after one sent out SOS, followed by investors and enterprises. Short in cash –> collect loan back–> cut expense –> consumption drops –> weak economy –>retail sales drop –> less orders in production –> cut labour, cut salary –> general people has less money –> lost trust in market –> buy less, invest less, withdraw money –> banks + enterprises go further down –> more companies announce profit warning or even go bankrupt
It’s whether trick or treat? It’s be all clear after weekend. I am afraid this is a domino effect in cycle, and America has set it perfectly.


