Recently, most world Indices has declined in a huge amount. One example is FTSE 100 which declined around 5% just in two days, IHSG has declined around 4% in the last four days trading although the regional indices were increased for some days lately which eventually followed the decline.
One of a bad news that arose in market is the problem of one of the rich country in the world, Dubai. Dubai's big property developer, Dubai World, has caused the big problem, which is the "standstill" action to the bonds which will due by this December 14,2009. Standstill action is the action of postponing the debt due date. Dubai World with its subsidiary, Nakheel & Limitless, has a lot of debt to be paid in this near time. There's a due of US$ 3.5 Billion of Islamic Bond on December 14, 2009 and debt which will due on May 12, 2010 amount US$980 million by Nakheel. Meanwhile, Limitless will have a due on March 30,2010 amount US$1.2 Billion. Totally, Dubai World has a great amount in liabilities which amounted US$59 Billion, which is the biggest portion of Dubai's liabilities which is US$80 Billion. The good news is the government has pointed Deloitte & Touche to restucturized the debts on bonds.
It is shocking that a great country like Dubai can't pay their debt. What's happening actually behind the scene? Is this in purpose or this is the real beginning of the 2nd Chapter of World Crisis? Just wait & see....
Back to stock reviews, my suggestion is to enlarge the proportion amount of your cash & reduce your stocks, it's due to the BIG BEAR has come. And remember, Buy On Weakness is one of the best strategy I ever met. Enlarge your cash, I personally has allocated around 40-50% cash in my portfolio, just in case of great crisis happened again. Get ready to cut loss, if possible cut loss below 5%. Have a great weekend....
Source: Detik Finance
Happy Trading^^
Disclaimer ON!!!
