marlon menezes wrote;
> In the US, the financially strapped consumers will have no choice in this
> matter
> - they don't have the money. Hence it may make sense to short consumer driven
> sectors such as durable goods.
Marlon,
The durable goods that the US consumes, are produced in China. I would not dare
short Chinese stocks as they might do the exact same thing the USSA govt did
and
ban the selling of stocks.
> 2) If there is place I would invest in, it is in clean/renewable energy. The
> bailout
> package has additional legislation that includes promotion of clean energy in
> the
> US. World wide wind energy demand is currently growing at a rate of 80%
> pa, while
> for solar it is around 40%. I think investing in these sectors should be
> reasonably safe bets.
Am looking for names of such companies. Any ideas?
> 3) Although everyone talks about inflation, I would like to suggest that the
> reverse -
> deflation may actually occur over the longer term (2+ years). It all depends
> upon
> how severe this downturn will be - bad or very bad.
To make this very simple, think of the US dollar as a tomato. When there is
excess
supply, the price goes down. When the US dollar goes down, imports become more
expensive. More expensive goods from China will cause inflation.
Think of gold too as a tomato. The price fell when central banks flooded the
markets with
gold. They sold low and used the cash to buy US treasuries which were yielding
six per
cent (vs nothing for holding gold) then. Now that US treasuries are yielding
less than the
US inflation rate, central banks are selling their US treasuries and buying
gold. Last year,
China became the biggest gold producer in the world. South Africa held that
position for
100 years. China has just allowed its citizens to hold bullion. Believe it or
not, the perfect
storm is just beginning!
The following was sent to me as a joke. My in-laws did not think it was funny.
Mervyn3.0
------------------------------------------------------------------------------------------------------
Investment analyst and entrepreneur Dr. Marc Faber concluded his
monthly bulletin (June 2008) with the Following:
''The federal government is sending each of us a $600 rebate. If we
spend that money at Wal-Mart, the money goes to China . If we spend it
on gasoline it goes to the Arabs. If we buy a computer it will go to
India. If we purchase fruit and vegetables it will go to Mexico,
Honduras and Guatemala. If we purchase a good car it will go to
Germany. If we purchase useless crap it will go to Taiwan and none of
it will help the American economy. The only way to keep that money
here at home is to spend it on prostitutes and beer, since these are
the only products still produced in US. I've been doing my part.'
__________________________________________________________________
Yahoo! Canada Toolbar: Search from anywhere on the web, and bookmark your
favourite sites. Download it now at
http://ca.toolbar.yahoo.com.
