Invest in Asian equities and inflation is here to stay.

Invest in Asian equities and forget US Government bonds (Marc Faber on CNBC, 16 Aug 10):



Inflation in Asia is here to stay.  0.125% per annum in interest payment from savings accounts in Singapore banks will erode your wealth:



Related post:
Grow your wealth and beat inflation.

Marc Faber is right again.

"More quantitative easing by the US Fed in September or October", Faber predicted in July, 2010:



It seems that Dr. Doom is right again and it is probably good news for equities:



The Fed "will do all that it can" to support the economy, he said, including "provide additional monetary accommodation through unconventional measures if its proves necessary."

At the top of Bernanke's ‘tool box' are "additional purchases of longer-term securities," including Treasuries and mortgage-backed securities. 

Posted Aug 27, 2010 01:35pm EDT by Aaron Task


Oh, stay away from long term US Government Bonds and buy some gold and silver (Marc Faber on CNBC, 16 Aug 10):




Related post:
Marc Faber: S&P will not fall below 1,010.
Gold: To buy or not to buy.

Hock Lian Seng: Steady accumulation.

Hock Lian Seng's share price retested resistance at 30c. That a gravestone doji was formed in the process suggests that there are many willing sellers at the current level. However, look at the OBV and we see a picture of steady accumulation.  The MFI has formed higher lows which suggests strengthening demand.  So, the sellers at 30c will probably be taken out in good time.

The 20dMA continues to rise and could provide immediate support at 29c.  Breaking 30c resistance would give an immediate target of 31.5c.

SPH: Doji at $4.00.

SPH's price action formed a doji, closing at the $4 resistance level. With the 20dMA still declining and the MACD in negative territory, there is a chance that price could continue lower in the next week.

The MFI has been forming lower highs and the recent uptick in price could be a weak rebound, therefore. For sure, OBV is lacklustre and does not suggest any accumulation activity. Immediate support is found at $3.92, as provided by the 100dMA although a stronger support is at $3.80 or so, which is where we find the 200dMA.  Judging from the high of $4.20 on 30 July and the current resistance of $4.00, $3.80 is also a technical downside target in case of a continuing decline in price.