August Insanity

Sun-burnt and tired after a Kelong trip, I sit here typing away wondering what else to add on the stock markets and the general asset markets. I mean, as far as warning about markets being over-valued, I done that numerous times, to the point of sounding like a broken record player.

Thus for August, I have chosen to write more about life and the joys it bring. For the markets, it is insane enough, driven by liquidity that ought to have been used to spur economic growth instead. So the less said about it the better.

Still, I noticed that after severely lagging markets, the S chips have rallied quite sharply in the last week. From a valuation perspective, they are still great value, but given the opaqueness of management in general, caution is warranted. The rally could be simply liquidity-driven rather than a re-valuation of S chips.Then again, such pessimism is normally the recipe for an unexpeced rally.

So what did August bring? And can we expect more in September? Barring a dramatic collapse, August was another great month, and since insanity has no time limit, September could be another insane month too. For me, that meant more time doing quiet reading and loving life... markets will take the back seat, again.