WWIII

The World is now at War - the WWIII.

A War with NO identified enemy.
A War with NO end in sight.
A War with the Largest Casualties.
A War looks like almost Everyone is a Loser.

We are all now facing this New War in the Globale Financial Markets.
Everything is Possible.
Everything could be Terrible.

The Emerging Market has now become "Emergency" Market.

They are all in Big Troubles -from Argentina in Latin America, to South Korea in Asia, to South Africa in Africa, to Hungary in Europe, to Ukraine in Old USSR Block etc. and to the once the UNbreakable "BRIC" (i.e. Brazil, Russia, India & China). Not only their share markets are falling like mad, so are most of their currencies.

http://www.economist.com/finance/displayStory.cfm?source=hptextfeature&story_id=12481004

Iceland has become "Isolatedland".

The First Country went down in the current Meltdown. In fact, the first Western Developed Nation that needs to be rescued since 1976! There are more falling countries lining up requesting help from IMF.

http://www.economist.com/world/europe/displayStory.cfm?source=hptextfeature&story_id=12465279

Britain has been "Beaten".

Its Economy contracted by 0.5% in the last quarter - the first time in 16 years. And its currency dropped by over 5% on Friday - the Biggest one day fall in 37 years and is now at US$1.53, back to the level seen in 2002! And two of its Banking Giants, HSBC & Barclay's dropped by 15% the same day. Its property price is expected to fall by another 16% in 2009 and will not bottom until 2010 - by then it will be 33% from the Peak reached in Mid 2007.

http://www.newsweek.com/id/165154?tid=relatedcl

HK has shown its Undisputed Commitment towards the "One Country, Two System".

Its HSI lost over 1,100 points, 8.3% on Friday - falling three times more than its Mainland China counterparts! In fact, HK share market has lost over US$14.6 Trillion in value for the last 9 months, and is now valued at US$8.6 Trillion only! None of the 50 Blue Chips making up the HSI now values more than HK$100 - which was once Incomprehensible!

USA - what can I say?
Massive Unemployment on its way.
Yahoo to cut 10% workforce, so is Goldman Sach. Chrysler has the Biggest Cut - 25% of its workforce. USA is soon to have the 7% then 8% then 9% Unemployment Rate! And the16th Bank collapse happened just last week.

http://www.nytimes.com/2008/10/26/business/26layoffs.html?_r=l&hp&oref=slogin

Australia - three mortgage funds stopped investors from redeeming on Friday. One of which owned by the Richest Man in Australia, whose mining firm's shares once rose by 40% in a month and 300% in a year - thanks to China.

Now, anyone putting A$1 million into any bank has to pay a fee. Still I believe Australia is better place in this current WWIII. Australian Economy is more dependant on China than US. Although China is slowing down with its lowest growth in 5 years, this 9% growth is still amusing - Japan or South Korean could not achieve this rate even in their boom years and the last time USA had this growth rate was about 50 years ago!

Also, there are about 1million Aussies working overseas, mainly in USA and UK. Many of them may have to return Australia due to firms scaling down. Their US$ and UK Sterling now buy 33% and 25% More A$ than 3-month and 1 year ago respectively, the Interest Rate being cut so aggressively and more help from the Federal Government (e.g.1st Home Grant, Stamp Duty Concession), this will make the property much attractive to them, making the adjustment in Australian Property Market more bearable.

Hedges Fund, the once Darling of the Investment World, has now become "Hitted Fund".
Because it is supposed to make big money regardless of the fall.

More than 200 Hedge Funds have gone since the beginning of this year. And is tipped to have another between 500-2500 (from between a total of 8,000-10,000) gone before the end of this year - the share prices in every market are now under Tremendous Downward Pressure.

Just in case you have not noticed, the share markets in USA, UK, Australia is already 40% down from their Peak about a year ago. HK fell more than 62% for the same period!

This is , however, ONLY the Beginning of the Most Disastrous Ending.

We had one of two Developing Countries defaulted on their debt at one time;
We had one or two Big Hedge Funds collapsed at one time;
We had a few Country Currencies being attacked at one time;
We had Big House Price Fall in one or two Countries at one time;
We had one or two Countries in Deep Recession in one time;
We had High Unemployment in one or two Countries at one time etc. etc.

But we have NOT had the above happening ALL AT THE SAME TIME.

How are you to Protect Yourself from this Most Brutal WW?

Next time, let me share with you what I have been doing/will do, giving you some ideas what you can do after assessing your Own Circumstances.

Fate
Make the Most of YOUR Circumstances