Buffett'S "Copy" Is Not Mistaken For &Nbsp; Asian Market Is Bigger Than Danger.

Despite warnings in the past, S & P has never seen anything unprecedented in the United States.

By contrast, the market participants seem optimistic.

Whether it is "stock god" Buffett, or a well-known investor, Mobius, and many Wall Street investment banks believe that the impact of this incident on the bond market and the overall financial market should be relatively short.

More analysts believe that in the long run, the exposure of credit problems in the US highlights more investment attraction in the better emerging markets such as Asia and attracts more capital to enter.

Will the US and Europe enter the two recession?

For the decision of the S & P last week to announce the decision to reduce the highest us long term sovereign credit rating, "Dr. doomsday" Roubini believes that this may be the last straw to crush the camel, and as a result, the US economy accelerates its entry.

Roubini, who wrote in the financial times 8, said that the hope that the current economic slowdown is only "phased weakness" has been shattered. He predicted that the United States and other developed economies will enter a new round of "severe recession".

At the time, the general election announced the downgrade to the United States, which only increased the possibility of the two US bottom finding.

Elston, Asia strategist of Aberdeen Asset Management, said in an interview with our reporter 8 days ago that it is clear that the economic weakness has become more serious, and investors are beginning to realize that corporate profits will be impacted.

In his view, rather than the downgrade of S & P is the reason why the market and the economy are currently weak, rather than the result.

Recent economic data do support this speculation.

According to a report released by the OECD on Monday, a comprehensive leading economic index covering the G-7 developed economies fell for third consecutive months in June, indicating that the economic activity of the developed economies has been "peaked."

Economists worry that the current fragile market may not be able to withstand such a major downgrade of the United States, and the continued slump in the stock market will, in turn, exacerbate the economic downturn.

Before the 8 th session, the US Standard & Poor's 500 index futures fell 2.3% again, indicating that the US stocks will be sharply lower again.

Demotion is not the end of the world.

However, market participants have noticed that there are many positive factors at the moment, so that people do not have to be too pessimistic about the downgrading of the United States.

First, the downgrade of S & P is only "one word". Moodie and Fitch have confirmed the highest rating in the United States.

In addition, the S & P's downgrade does not directly affect short-term debt, which is a very important factor affecting the financing of the huge money market.

From the immediate reaction of the Treasury market, at least the bond investors did not regard the S & P's downgrade as "the end of the world": the 8 day European market, the yield of the 10 year US debt even dropped 5 basis points, to 2.51%, lower than the 2.56% before the downgrade news.

The 2 year US bond yield has dropped to a record low of 0.2520%.

Unlike the pessimism of scholars, many investors in the investment field are not convinced of the downgrading of the United States, and Buffett is one of them.

The 80 year old "stock god" 7 days in an interview with the media said that the United States is worthy of the "4A" rating, he believes that the US economy will not have two recession.

Miller, a prominent investor in Wall Street and star fund manager of Maison Group, said that S & P's behavior is "reckless, wrong and dangerous". The United States is "the world's productive efficiency."

In fact, the "stock gods" seem to be using the current crash to "copy the bottom".

Buffett's Berkshire company issued a $3 billion 250 million takeover offer last weekend to its reinsurer [13.29 -1.26% shares in the Atlantic.

Berkshire's latest documents show that in the second quarter, Buffett increased his stock holdings by nearly three years.

Capital or pfer to Asian market

Some industry insiders believe that for Asia and other emerging markets, S & P's downgrade to the United States may not be all bad.

Mobius, executive director of Templeton asset management, wrote in his blog 8 that the debt problem of the United States may become an opportunity for emerging markets.

Mobius, known as "godfather of emerging markets", said that standard & Poor's downgraded the US last week and heard a warning several weeks ago.

At this stage, he believes, stocks and currencies in emerging markets may be more attractive to investment, because emerging market countries have more foreign exchange reserves than developed countries, and debt accounts for a lower share of GDP.

Mai Jiahua, a well-known investor who successfully predicted the stock market crash in 1987, said in a television interview 8 days ago that the stock market had been in an "incredibly oversold" state and would soon rebound.

McLeod, a UBS strategist, released a report on Monday that the S & P's downgrading of the US credit rating would not lead to large-scale chaos in Asian stock markets.

The experience of Japan shows that, in the case of sovereign ratings being downgraded, the reactions of stocks, remittance and bond markets are generally relatively stable.

Analysts believe that the trend of investment diversification brought by the downgrading of the United States may even be a good thing for Asia in the medium to long term.

Samsung Securities analyst said on the 8 day, the stock market callback may be about to end, there is a wave of 5% to 10% "bear market rebound", it is suggested that investors buy the Chinese stocks that may lead.

Citigroup analysts listed a series of investment attractive areas in the Asian stock market, such as semiconductors, energy and industrial stocks.

In some areas, capital has begun to shift to Asia quietly.

Market participants noted that in the wake of the debt crisis in the US and Europe, Asian sovereign debt has increasingly become a safe haven for international investors.