Caution over rising market
The recent stock market rises may just be small ripples of a mighty ocean in what is certainly a turbulent storm.
Investors and traders should be cautious about jumping into the stock markets in the belief that they have hit the bottom . They should remember that only two weeks ago:
The World Bank, in a shocking report, warns that the global economy will shrink for the first time since the World War II;
The Asian Bank reports that more than US$50tril in invested wealth vanished into thin air last year.
Both reports are not encouraging at a time when we need some positive news about the world economy.
But it is not all doom and gloom for some entreprenuers who use their brain power to perform spectacularly to boost profits.
According to reports I received from the US, Netflix, an online movie rental company, announces its revenue in the quarter ending last December jumped 19% and earnings rose 58%.
As a result, its EBITA (Earnings Before Interest, Taxes and Amortisation) hit a six-year high with an increase of 18%.
Netflix predicts its customer base will rise from 10 million subscribers to about 11.3 million by the end of this year.
Well, the company must be doing something right to get such an impressive result in an economy that is overwhelmingly falling into a deep hole.
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