Buying the dip a distant thought as pessimism grips the market
The sell-off is feeding on itself and creating fears of a global recession among investors.
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Singapore
SHANE Oliver is among investors who see things getting worse before they get better. The head of investment strategy in Sydney at AMP Capital Investors Ltd, which oversees about US$120 billion, says Asian stocks may drop another 10 per cent. Shares are already at a 31/2-year low amid a global rout that saw equities around the world slide into a bear market this week.
"The sell-off is feeding on itself," Mr Oliver said. "Share markets have fallen and credit markets have weakened. That's creating fears of global recession and the problems with the banks are leading to fears that bank lending will be affected. It's a negative feedback loop."
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