Remember Tan Teng Boo? He confidently called for people to buy stocks way back during the market slump in 2008. Of course, he was right. Now, he is a bear. He is expecting more severe downside for global stocks in the coming few quarters. He says a severe downturn or recession in the US is on the cards. Also, Europe's debt crisis could get messier and inflationary pressure in emerging markets is unlikely to ease anytime soon.
As such, he expects the S&P to trade to a low of 900 over the next 12 to 15 months. He sees Hang Seng and Nikkei to trade to 15,000 and 8,000 respectively too. What will he buy when markets have fallen to those levels? He is eyeing London listed IP Group, DNA-sequencing company Illumina and Hong Kong listed REXlot.
I remember clearly Tan Teng Boo calling for a buy during those days. It pays to heed his advice now. I am keeping my powder dry. The next 12 to 15 months could be the most defining moment of my life.
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