Pros Say: Credit Cards May Be a Problem
This October could be the worst month ever for Asian markets. As the month ends, European and most Asian markets were in the red Friday, despite the Bank of Japan's interest-rate cut.
Investors are fearful of a severe global recession, waiting for the other shoe to drop. CNBC's experts believe there may be a credit card crisis.
Built on "Hot Air"
If the subprime crisis was built on air, the coming credit card crisis is built on hot air, says Enzio von Pfeil, CEO of EconomicClock.com. He explains what he means and why he believes this is the next shoe to drop.
Not the Time to Sell Asian Stocks
If you are holding Asian equities, now is not the time to be selling them, advises Simon Godfrey, investment specialist for Asian equities ex Japan at Fortis Investments.
Play the Front-End of the Curve
T.J. Marta, economic and fixed income strategist at RBC Capital Markets advises investors to 'long' the front-end of the curve as the Fed is expected to keep rates at 1% or lower.
Dow to Trade Flat for Short Term
When you look at the world markets, the rallies this week are impressive, Royce Tostrams, technical analyst at Tostrams Groep said. The outlook for the Dow has improved and shows a sideways pattern for the short term, but volatility remains high, leading the long-term trend to remain on the downside.
"Remain on the sidelines. Remain in cash. Don't enter this market too soon. Wait for more evidence," Tostrams said.
From a short-term perspective, the euro is trying to recover some lost ground against the dollar, but gains will be limited. If the euro breaks below the $1.233 level, it will fall further, according to Tostrams.
Buy the Dips, Not the Rallies
"We're not seeing any confidence and conviction on the 'buy' side," Dodge Dorland, chief investment officer at Landor Capital Management said. "Although we seem to have found a bottom short term. Typically market bottom's in bear markets take 2-3 months to form, and will be re-tested over that period of time. We're in between those two points."
"We suspect that buying dips will be more important now than buying rallies, although we do see continued volatility through the end of the year," Dorland added.
Commercial Paper Illusion
The commercial paper market has improved recently. But no one should be under any illusion to the reason it has improved, it's because the Federal Reserve's buying it up, Richard Wilson, fund manager at Threadneedle Asset Management said.
The OIS Libor spread needs to retrace another 5,000 basis points at least for the situation in the markets to start improving, according to Wilson.
Wilson does see "significant value" in corporate yields or corporate spreads.
Shanghai Stocks May Fall Further
Expect further weakness in Shanghai stocks, says Enzio von Pfeil, CEO of EconomicClock.com. He tells CNBC the reasons behind his bearish outlook, in spite of China's fantastic growth story.
Hot on Base Metals
Hold base metal stocks and accumulate on any dips, advises Jonathan Barratt, MD of Commodity Broking Services.
Bleak Outlook for Asian Airlines
No Asian airline will remain profitable in 2009, believes Peter Harbison, executive chairman at Centre for Asia Pacific Aviation.
Singapore Property Plays Attractive
Property plays in Singapore are starting to look attractive following the sharp correction, says Christopher Wong, investment manager Aberdeen Asset Management.