Komal Sri-Kumar is President of Santa Monica based Sri-Kumar Global Strategies, Inc., a macroeconomic consulting firm that advises multinational firms and sovereign wealth funds on global risk and opportunities.
In an interview by Yahoo Finance this morning, he has these to say :
"When you have all this liquidity chasing a fixed number of assets, the asset price inflation takes place."
"It looks as if there is no end to the zero interest rate, so the bubble is going to get even bigger."
"It's very hard to say when the bubble is going to burst'"
"20,000 is way too high. We are probably going to see a 2,000 or 3,000 points drop before we see Dow 20,000 years from now."
He is talking about 15% correction for Dow before it reaches 20,000.
Click 'Dow poised to drop 3,000 points' to listen to what he has said.
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ASB was traded actively to close at its high of 22.5 sens (+12.5%) with improved volume of 14.3 million shares. Is this the starting of its wave (v) of major wave 1 of its mega wave (3) ?
In May, it moved from 14 sens to 26 sens (+85%) within 10 trading days to complete its wave (iii). Since end of May it has been forming its wave (iv).
I have been wondering whether wave c of (iv) was going for 5 or 9 waves. With today's powerful candlestick, it appeared to me that wave c has only 5 waves and wave (iv) has finally ended.
However, technically there is still a possibility that this rebound could be the wave d of (iv), if the rebound is a one-day affair, then the next down is the wave e of (iv). Hopefully ASB can continue to move higher tomorrow to put it beyond any doubt that wave (iv) has ended and ASB is forming its wave (v) currently.
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