By now you are an idiot if you still think the global recession is not real and a confirmed moron to think that the current economy crisis will not affect your country. You can’t pretend to see no evil hear no evil simply just because you’re clueless on how to tackle this problem. It’s alright to admit that you’re clueless and helpless on how to go about it. Furthermore the most powerful person in the world, the President of the United States, is still searching for the magic potion so there’s nothing to be ashamed of. However it would be disastrous if you try to cook up misleading stories and pictures that the country is doing well and is insulated or shielded from this disease called recession.

Japan’s economy contraction is predicted at more than 10 percent in the fourth quarter. Job cutting is gaining momentum with Pioneer Corp., Sony Corp., Nissan Motor Co., NEC Corp., Toyota Motor Corp. and more big names to reveal the impact on their businesses. The European economy declined 1.5 percent in the fourth quarter or 6 percent contraction based on annualized basis. Even the Seattle-based coffee giant Starbucks Corp.’s (Nasdaq: SBUX, stock) which has $17 billion global market share decided to jump into the instant coffee market, away from its comfort as a seller of expensive coffee sellers. Starbucks is set to introduce “Via” instant coffee – three single-serve packets at a cost of $2.95 and 12 packets at $9.95.

At this moment nobody knows if we’ve just entered the tunnel of another Great Depression but understandably most of us would rubbish such scenario. What about Great Recession then? It sure sounds better than Great Depression so it’s acceptable. Investors specialize in distressed debt and bankruptcy believes the United States is going through a “Great Recession”. Holly Etlin, a managing director at AlixPartners with 30 years of experience in restructuring, said financial distress will last three to five years due to a lack of liquidity in credit markets and lack of debtor-in-possession financing. Nevertheless there’re still opportunities to make money in the stock markets but before that you need to ask yourself what type of investors you are?

If you’re a long-term investor, are you flexible enough to adapt the method of short-term investing? And if you’re a short-term investor, can you get out of the box and adopt swing trading strategy? You would have made some pocket money if you know how to take advantage of situation around you. There’re opportunities in every crisis. Remember the Perak Constitution Crisis? Did you read FinanceTwitter’s previous article – Perak, PR, BN and Gamuda – It’s all about Business, Stupid. Political anger aside, you would have made some bucks on Gamuda Berhad (KLSE: GAMUDA, stock-code 5398) if you read the little hint in the article. Today Gamuda shares jumped the most since Nov 10th and it’s all because of the believe that the company will enjoy the fruits of the coming second economic stimulus package scheduled to be announced on Mar 10th.

Whether Gamuda will be given “special preference treatment” or not (after the recent political crisis in Perak), the company is expected to reap its lion shares in projects via direct negotiations. If the hint from PM-in-waiting Najib Razak’s mentor and adviser, Mahathir Mohamad, is anything to go by the second stimulus package will be in the region of RM30 billion – RM35 billion. This staggering amount of money is enough to buy over one’s dignity and principle. Heck, businessmen and businesswomen are willing to bend over just to get small pie of this package. All the eyes are on Najib to take over the premiership from the sleepy Abdullah Badawi in Mar. So if you intend to make fast bucks, just go and whack all those stocks related to Najib Razak’s family members.

Anyway Gamuda seems to have hit the resistance of RM2.10 a share and if it can breach this level, the next resistance will be RM2.60. The fact is Najib Razak is almost guaranteed to be the country’s sixth Prime Minister in compliance to the R.A.H.M.A.N prophecy. And the new wave of companies or cronies closed to Najib is set to laugh all their way to the banks.

Other Articles That May Interest You …

• Dirty Politics and Economy – Choose Wisely, Najib
• Perak, PR, BN and Gamuda – It’s all about Business, Stupid
• Another yardstick on Economic’s Health – Starbucks

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February 13th, 2009 by financetwitter

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