Sunday, March 20, 2011

Enough is enough

Two events caught my attentions.

The international community is finally taking actions. Gaddafi, enough is enough, it's payback time, AH(ass-hole). This is market positive.

Secondly, the fear of Japanese insurance companies need to redeem their overseas investment is unfounded. The Japanese authority has been smart, standby with tonnes of liquidity to combat panic. What is even more interesting is people outside Japan thought that was a great opportunity to buy. The poured in money like no tomorrow. See the one day action? On that day, the market was down by almost 11% but recovered half of it.

How bad is this quake to disrupt the supply chain? My take is not very big. First, the softening of the technology related products started since Q4 2010 means the world has spare capacity to pick up the slack. Secondly, technology companies were optimistic and did not cancel capital projects. We are going to be okay when additional supply coming up slowly. Thirdly, we are dealing with very sophisticated multinationals that have multi sites as part of their disaster recovery plan. Will supply chain choke growth? Unlikely.

What about the nuclear plant? The meltdown and etc? In case you are still behind the news, they already talking about restarting the plant. So you figure out the risk.

ENGINEERS were last night able to restore electricity to one of the reactors at the crippled Fukushima Dai-Ichi nuclear plant.

But power was still not getting through to its five other reactors, prolonging efforts to start up water pumps needed to prevent more radiation leaks.

I have written most of the analysis with my left brain. It's not healthy if I don't let me right brain to speak. As a closing, let's offer our prayers to those who are affected by natural or man-made disasters. May God offers comfort, healing and protection to all.

1 comment:

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