I do not et see a strong US recovery however what I do see in the near future is managed investments that have US interest reporting substantive negative growth whilst those with only Australian equities reporting positive earnings. Managed funds will have to bite the bullit soon and invest more in Oz because the dollar is going to continue its upward trend, gold will move higher and consequently people that have invested in the US will be loosing, because even if the Dow recovers, they still will be hurting because of the exchange rate. Two years ago I had a serious discussion with a major fund manager who told me I was a fool for not investing in the US market. I told him that at the present exchange rate I could not recommend investing in the US because it was too risky, Us was too high and the Australian market was totally undervalued. I therefore stayed in the Oz market, stayed out of tech and ended up with a 30% year on year increase.
