Is the worst over?

The credit crunch may be over, but I dont think the worse is over. Wall Street's problems may be over but Main Street's problems may just be starting.

Problems over the past 2 months have affected the overall economy. In US, we will see more companies reporting lower profit as business slowed. There will be more layoff. Unemployment will increase, spending will be lower. This will affect business all over the world.

We are hearing reports of China getting less orders from the US for manufacturing products. This will result in China's companies reporting poorer results. When companies report poorer result, EPS will be lowered and hence price of those companies will be re rated lower.

Singapore listed companies will not be spared this problems. Over the next 2 weeks, we will be going into 3Q reporting season. You can expect many companies to report lower earning. When that happens, expect sentiment to be dampened and share prices to be lower.

It may take a few more months before business and economy pick up steam again. That will be the time when the worse is over.