Conflicting Views.

The local investing community was a buzz yesterday following this statement from Dr. Tony Tan, Deputy Chairman of the Government of Singapore Investment Corporation (GIC) that "the world may face its deepest recession in 30 years".

But what I'm deeply puzzled about is this:

If that really is the view of GIC, then why on earth did it make those significant investments in UBS and Citigroup. If its view of the situation is so pessimistic, then wouldn't its investments be poorly timed and irrational?

This is clearly a case whereby its thoughts versus its actions are not at all cohesive.

Don't get me wrong. I'm not saying that GIC is wrong and that all will be okay.

But I do think that this damning and pessimistic statement should not be taken so seriously.

Stumble it!

This entry was posted on Monday, April 21st, 2008 at 8:22 pm and is filed under kleer. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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