So sabre, BHP and RIO aren't real stocks? I thought they sold real stuff, ie commodities?
I'm not saying the US won't run - I've never undersetimated the US market and the resiliance of it to recover. To suggest however the commodities market is done in what we are experiencing (the worlds biggest industrilastion in such a short period of time) and to do so when sitting Australia (assumign you are) where we are so perfectly positioned to supply this is a serious oversight of the opportunities.
Post the Olympics, which for some reason so many are suggesting is the end of solid growth in China (why??)I suggest you jump on a plane and see whats happening in the 'real' world. The Chinese won't let the machine stop (maybe slow to 9% growth from 11% growth - big deal!) and will use what amounts to an extraordinary amount available capital and control of the 'system' (not forgetting the political structure there) to keep the wheels rolling.
The US will muddle along I feel and probably have a period of deflating prices (asset wise) and a generally trendless market (once oit finds a bottom) like the Japanese have had since 1990. The main issue the yanks will face as opposed to the Japanese is they have very little in reserves and a lot of debt - of course they could simply print some more cash which is going to be continually negative for the USD. Business as usual. As for interest rates...they aren;t going up anytime soon - also see Japan.
I'd much prefer to bet on resources (not suggesting specs) than the US market or USD. Its being handed to us on a platter and most are selling at the low (or close to).
Typical?
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6monthly chart looking fairly good, page-7
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