Market Situation

So this is just a brief update on my thoughts: The stock market fell sharply in China and the U.S. amid concerns of both economies slowing which was reiterated by Alan Greenspan and the fear of a weak housing sector. There were fears of a possible correction after an extended span of steadily increasing markets. Some claimed that the possibility of tax reform in China was the catalyst that triggered these events and there were those saying that a long recession was coming etc.

This was a great time to enter into stocks and ETF's that were just a bit too high for my liking. China's market is still a great opporunity with tremednous growth potential. The U.S. market is steadily becoming less attractive to investors as money leaves our marekts to go into Asia and Europe. Following these trends is probably the quickest way to find those faster moving purchases. That was my gamble.

It looks like it might have paid off as stocks rebounded slightly and ETF's especially took off today. It was helped by the Fed's Bernanke saying that the economy was set to grow moderately. My current plan of attack is to look at health care, ETF's, and companies such as Proctor & Gamble. The U.S. markets will be further hampered by new economic data saying that sales of single-family homes has dropped in Jan and that the Midwest Manufacturing was at its lowest level since Oct. of 2002. Combine that with the data that the U.s economy grew at a weaker-than-expected rate in the last three months of 2006 and you can see that the U.S. market will not be as lucrative as it once was.

Another lesson learned here is how much China's market power has grown. Their economy has the ability to greatly affect all markets. It would do the U.S. well to remember that in its relationship with China and how suggestions are worded regarding their financial policies.

Lastly I am glad that Bernanke has come into his own and has weathered the storm and reassured the public that he is the Fed Chairman, not Greenspan.


What i have gotten into and/or am looking at: ICE, FXI, CHL, GS, PG, EEM, ATI, TEVA, XING, MHS