Rebound might not continue

The Straits Times reported today that global investors were pulling out of the Singapore stock market after the recent rebound.

This tell you how nervous people still are over the US housing meltdown and people are running scared of a possible credit squeeze in America. Even after a broad stock market rebound, including Wall Street's 2.29% rally in the past week, investors still believe that the hefty losses earlier this month will continue. I think they are right.

The biggest problem is that the crisis is in the housing sector. Real estate is a slow business, much slower than finance. So the housing problem will take the Americans weeks, if not months, to unravel. Until then, people will stay nervous and people will stay scared. Weak markets are ahead.