Japan's earthquakes and nuclear disaster...

This is an unfortunate period for many people in the world especially those living in Japan and some of them who have their lives thorn apart overnight... the earthquakes damage were well contained but the damages brought by the tsunami were devastating.... to make things worst, the nuclear reactors are exploding 1-by-1. With the northeast wind blowing strongly, it will make the radiation spread faster than what the specialist can anticipate... Its sad to say that things are going to get worst for Japan from here... I do hope they are not hit by another earthquakes (up to half the magnitute of the first one) else, i think it will take decades for Japan to rebuild for sure....

How does this impact the economy? Well, Japan stock market has certainly shows the true pciture today by dropping more than 14% on top of the first trading day (post quake) loss of 6.2%. Oil prices continue to drop and world wide equity market continue to be sold down in view of the great uncertainty surrounding the world today. Many people even talked about the end of the world and how all these are actually signs before the ruptures.... I personally think there is a correlation to that.

Bear in mind that should the situation in Japan gets worst, the world economy will too and certainly the recovery in the US will be affected and this will cause a ripple effect throughout the rest of the world.... KLCI is no exception, you can have all the ETPs with billions of projects being rolled out but if the economic state of the world is in a down turn, not even a "100bil" MRT project will keep the optimism alive.

Worst case, if the nuclear crisis in Japan escalated higher then we'll likely see the stock market taking a plunge of a record size...
Investors should adopt the wait and see strategy before buying in bulk... there are many side effect of this crisis this time...