A few weeks ago I wrote about the Greek bailout and the Chinese financial market's big decline. Now the Greeks have kowtow to their European debt masters and accepted the bailout. They have agreed to worse measures than if they didn't revolt in the first place. I hope the best for the Greeks but I don't see how these measures are going to get them out of trouble in the near future.
The Chinese market was stabilized for a short time but it is declining again. This has spooked the rest of the world, including the U.S. stock market. China has gotten so big now that when it sneezes, the world catches a cold. But while this may linger for a while, China does have the largest foreign reserves in the world and should be able to withstand this down turn. It just make market reform that much more difficult. As far as the U.S.'s concern, our indicators show that we are due for a correction in the market anyway. But the price to earnings ratio are not very high and unemployment is down. So I think the market will recover in the near future. I may be wrong and we head for a recession and that will hand over the election to the GOP nominee. But I am going out on a limb and say this won't happen and I have backed that up by investing $5000 tomorrow in the market because I think it is a reasonable time to buy.
Sunday, August 23, 2015
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It would make sense to buy stocks now, while they are low. The market will not fall much more than it has. If I had the money, I'd definitely buy something.
ReplyDeleteNow, it was only a matter of time before the Chinese bubble burst. I feel more for the people that invested in that market who lost a lot of money. This could be the first time they've had to experience something like this.
Saw that Biden had some kind of secret meeting over the weekend. I heard that the deadline for him to decide is October 1, which seems like it's cutting it close. I can't imagine he has so many backers, but apparently he does. If he somehow gets Elizabeth Warren to run with him, that would be a decent ticket.
-LBOAYM
I don't know why Warren would run for vp if she does not want to run for the top job. There was something about Biden would only serve one term if he wins due to his age. So maybe Warren would do it knowing she can run after Biden retires. I also heard that Obama gave Biden his blessing, whatever that means. Who is Obama going to endorse, his own vp or Clinton since Bill helped him last time?
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