GIC sound caution

You knows things are going to get bad if even the normally secretive GIC says so. The Singapore Straits Times newspaper quoted the deputy chairman of the Government of Singapore Investment Corp (GIC) saying that ther are dark clouds on the horizon in the world financal markets.

In case anyone do not know, the GIC manages Singapore's national reserves, which has funds of over than US$100 billion. Deputy Chairman Tony Tan said that the crises was in the sub-prime mortgage market in the United States, rise in oil prices and the danger that some asset markets are priced based on a rosy scenario for the world economy.

I hope this means that the GIC will invest less in the U.S market, especially in the buying of the U.S dollar. I have written last month that I believed that Singapore has too many U.S assets at the moment. Already we have seen last week what could be the first signs of the credit squeeze in the U.S. Instead of a one-off like many people hoped, it could be the start of a bear market. If you don't trust what I say, you must take note of the GIC.

So for all you people who put your life savings in stocks, look out! Exercise caution, and be slightly conservative in your investment. we may be in for a bumpy ride.