and get clues from other nearby markets as forewarnings. One lesson we’ve learned very well from US housing market:

When 2nd tier cities started to get crazy in price escalation, we know that the bubble has entered into the late-phase of a big bubble. Hot monies always seek better profit from 2nd/3rd tier cities when first tier cities get over priced.

When 2nd tier cities started to drop in price, first tier cities won’t be far behind.

If we always remember this lesson, we will have an upper hand in managing the bubble.

On a recent marketing trip to the South West of England we spent a lot of time running through how we felt the autumn’s financial market turmoil might impact on global economic activity and long-term financial market returns.

The conclusion was, perhaps unsurprisingly, that there would be an obvious negative impact on global and particularly developed economy activity and that in future financial market returns would more closely match underlying economic reality than perhaps they had over the previous four years. It is now time to look at the big picture for 2008 in more detail.

I am going to write some of my thoughts of stock market investment.  Those thoughts are from the lessens I learn from my 8-year investment experience.  Not very long even if I consider my practice around 2000 is “investment”.  Comments from anyone are welcome.