Hu Li Yang explains QE3 and its effect on Singapore stock market
Hu Li Yang: Stock market is economic-engine; stock market to boom for 2 years
Video in Mandarin
Video transcript from expert panel discussion, Shares Investment Conference in 2012
- QE3 was expected
- US is the epicentre of the ‘Lehman’ financial crisis
- The financial crisis was caused by excessive capital
- There is no shortage of capital in the world but there is a shortage of confidence
- Investors are not willing to invest capital to production
- Investors not investing their capital due to too much caution
- QE1 and QE2 are like ‘drinking poison to quench thirst’
- Capital did not go into production instead going to speculation in stock, bond markets
- Bernanke and the US Federal Reserve took a gamble with QE3
- Federal Reserve worried about overinflation, rising price of commodities, energy and gold
- QE failed
- Economy is a window into the stock market, not the other way as most investors believe
- Stock market drives an economy through wealth creation
- QE1 and QE2 implemented by trial and error
- QE-driven stock market will drive economic activity but like having Viagra, once started cannot be stopped
- Very optimistic about global stock market in the next two years
- Singapore stock market will prosper
- Stock market prosperity driven by stimulus
- Needs to revisit stock market direction after 2 years
Mr Hu Li Yang, Taiwan
One of the most popular investment and finance experts among the Chinese from all over the world, Hu is hailed as “the Guru of Wall Street”. He was the first Chinese vice president at Merrill Lynch, as well as the general manager of the bank’s branch at Silicon Valley.
He has successfully introduced a lot of terms used by the securities markets in the west into Asia, such as “securities firms”, “financial derivatives”, “index futures”, “pull back” etc, and these terms are extensively used by the Asia markets nowadays.
As he can accurately analyse and predict the global financial trend, he is hailed as the “Godfather of Asian stock market”. Hu Li Yang has spoken for Shares Investment since 2011 and has always garnered more than 1,000-person audience. His engaging and educational approach to investor education has made him a very popular speaker amongst retail investors.
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