Dubai triggers the correction

Last Friday, Dubai created wave in financial market by asking for loan repayment extension. Market suffer a knee jerk sell off, many of the European bank are being affected, because of lending money to them. The debt amount is staggering.

Compared to last Friday sell off, STI only suffered a bit. The market player properly figured out Dubai is not US. Only stocks linked to the middle east likely to be impacted. However, this could be the trigger point for a meaningful market correction.

Those with cash should start looking to add position. Growth likely to be muted for US in coming years. The future still lies with China. Should add good stock which could ride on China wave.