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member since 2007-07-24
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2. Weak demand during economical downfall
3. Market is getting saturated. Cellphones are replacing digital cameras.
However the China Petro had cut the gas field production and thus will increase the inflation in food and energy supplies. The quake will further raise the inflation in the entire E. Asia region.
The burst of tech bubble + 911 caused a deep drop at the end of 2001, and then, after a little revival, a deeper drop at the end of 2002. The adjustment was over -30%. The recent slump of Dow Jones was about -15% (from the highest point in 2007 to march 2008). This time the recession was triggered by more fundamental problems: high debt / poor credit ratings, housing bubble, and high inflation etc. The source is far more serious than the problems in 2001.
The market is expected to have a BIG adjustment. If it remains BULL now, there should be a bigger BEAR later - just as what we could observed in 2001 and 2002.