Wednesday, August 15, 2007

US Subprime jitters

So, what should we do amidst the US subprime jitters?

I think it is just the tip of the iceberg. Everybody knows its going to hit the fan sooner than later, it is thus, fitting, to call it crisis, than just jitters. Which means more funds will fall, and that stocks and currencies will fluctuate in the coming days and weeks than usual.

Locally, stocks will go lower in the coming days and weeks, and there is more room for the peso to depreciate. From 45, I am now saying it is going to hover around 50 for everybodys benefit: from OFWs, to our exporters, and to the Pinoys dependent on the dollars sent to them by Pinoys overseas. Besides, the government already acquired so much dollars cheaply when it was at 45, and paid many debts. This is the best e.g. ideal arrangment that we could have. But as Murphy says "Nothing seems easy as it looks, and it will take longer than expected......"


For now, I would say, get out, be wary, be careful, and watch out.