What Happens After the Olympics?

The year 1997 was the Asian financial crisis and stock markets in Asia were sent tumbling down like humpty dumpty. We see a recovery in the year 1998.

In the year 1987, Those who are already investing that year would probably remember "Black Monday" which is remembered as the largest one-day drop in the history of the New York Stock Exchange (NYSE) and this sent shivers to stock markets all over the world. Again it made a slower recovery in 1998.

A 10 year cycle? It is now year 2008. The year 2007 was the market peak, which was also peak 10 years ago. Therefore is the year 2008 going to be the recovery?

Few years ago, market pundits have forecasted the big correction in the financial markets to happen in the year 2008, after the Olympic Games. The Olympic Games has already started. Markets have already gone into a correction.

In the US, The Dow Jones Industrial Average is already down 21% from the high in 2007. The US market was not really affected in 2007 as the crisis was in the Asia region.

In Japan, the Nikkei 225 Index already fell 28% from the high in 2007. 27% in Hong Kong. 26% in Australia, Singapore and Malaysia, 25% in Korea and 16% in UK.

The biggest correction was in China, the SSEC index fell 58% from the high last year.

So, are we going to see a recovery after the olympics, or the correction is not over? Will other markets follow China's suit?

We will be interviewing some experts to get their opinion and we will publish it next week, so stay tuned.