Market update 23 August 2011

Asian markets were mostly lower yesterday with the STI closing flat. Investors seem to be waiting and staying on the sideline. US market was marginally higher indicating that the confidence level in investors is still low. Most are anticipating the FED reserve meeting this Friday to see if there's any good news. Analyst comment that even if there's another round of QE, it will not last. QE1 worked, QE2 was not lasting and did not contribute to any growth in the economy. I doubt QE3 will be of any help also. If globally, countries are still reporting week economic data and contracting GDP, we may be heading into recession. Most countries previous GDP report shows contraction including Singapore and Germany. If one more quarter of contraction, we'll technically be in recession.