Lehman Brothers collapsed today in the US.
Lehman Brothers, the fourth largest securities firm, today filed for bankruptcy as the subprime crisis continues to spread across the US. This is bad news indeed after the recent Bear Stearns collapse as analysts fear the ripples across Wall Street may be even wider reaching.
But what does this mean for us here in Malaysia?
The Lehman Brothers bankruptcy was not good news at all for our already ailing KLSE market. Our market, together with the other Asian markets, fell this morning. However, if you are a long-term investor with some cash to spare, you might want to seriously consider picking up some bargain blue-chip stocks from the KLSE, especially plantation stocks which has taken a tremendous tumble from their recent highs.
Thousands of jobs especially investment banking jobs are expected to be laid off in the US with this recent announcement, adding on to the record high unemployment rate. A recession seems rather inevitable and it might be a matter of time before Malaysia too is hit. So, this might not be a good time for employees to job-hop in search of better jobs, especially if in the banking or investing sector.
For the time being, it might be good to hold on tight to your jobs and continue to save and invest wisely with our smart money tips.
