The next tippng point will be food. Coffee has been fallling for a long time,i know it’s not really food, now it is starting to rise. Food in my opinion has been undervalued for a long time,8-10 years. Now when food prices go up everyone will feel it and that will start the inflationary cycle.

The next tippng point will be food. Coffee has been fallling for a long time,i know it’s not really food, now it is starting to rise. Food in my opinion has been undervalued for a long time,8-10 years. Now when food prices go up everyone will feel it and that will start the inflationary cycle.

#1. Keep in mind that the Chinese are not the only player. Their total US debt purchases account for maybe a third of our trade deficit. The other two thirds go to Japan, the rest of SE Asia, Saudi Arabia, etc. etc. The United States have trade deficits with half of the world.

Also, significant declines in foreign purchases of US debt may have more effect on exchange rates (strengthening renminbi and weakening dollar) than on interest rates.

Most likely, the Chinese will not do any major movements in this area unless world economy is sufficiently stabilized.

#2 should not have much effect on the rest of the economy.

#3. That’s a risk, but it would take a 2/3’rds conservative majority in Congress or a Republican president to revoke the stimulus. Not a real possibility before 2011.

Re: #4, that would probably be good for exporters and foreign companies. So that depends on your equity structure. My own portfolio is heavy on both: AA, RTP, TXN, SI …

#5. $100 oil without an adequate fall in unemployment would start making me worried. At $150 I’d start selling.

#1. Keep in mind that the Chinese are not the only player. Their total US debt purchases account for maybe a third of our trade deficit. The other two thirds go to Japan, the rest of SE Asia, Saudi Arabia, etc. etc. The United States have trade deficits with half of the world.

Also, significant declines in foreign purchases of US debt may have more effect on exchange rates (strengthening renminbi and weakening dollar) than on interest rates.

Most likely, the Chinese will not do any major movements in this area unless world economy is sufficiently stabilized.

#2 should not have much effect on the rest of the economy.

#3. That’s a risk, but it would take a 2/3’rds conservative majority in Congress or a Republican president to revoke the stimulus. Not a real possibility before 2011.

Re: #4, that would probably be good for exporters and foreign companies. So that depends on your equity structure. My own portfolio is heavy on both: AA, RTP, TXN, SI …

#5. $100 oil without an adequate fall in unemployment would start making me worried. At $150 I’d start selling.

#1. Keep in mind that the Chinese are not the only player. Their total US debt purchases account for maybe a third of our trade deficit. The other two thirds go to Japan, the rest of SE Asia, Saudi Arabia, etc. etc. The United States have trade deficits with half of the world.

Also, significant declines in foreign purchases of US debt may have more effect on exchange rates (strengthening renminbi and weakening dollar) than on interest rates.

Most likely, the Chinese will not do any major movements in this area unless world economy is sufficiently stabilized.

#2 should not have much effect on the rest of the economy.

#3. That’s a risk, but it would take a 2/3’rds conservative majority in Congress or a Republican president to revoke the stimulus. Not a real possibility before 2011.

Re: #4, that would probably be good for exporters and foreign companies. So that depends on your equity structure. My own portfolio is heavy on both: AA, RTP, TXN, SI …

#5. $100 oil without an adequate fall in unemployment would start making me worried. At $150 I’d start selling.

Not sure what impact it will really have but my guess says that gold challenging $1K could have an impact on the future of the markets. It may not be much of a telling sign, but it does show us that many investors are making the move back to portions of the commodity market for safety purposes.

I believe the dollar is on the brink of a major downward move, but we will have to wait and see. As far as commercial real estate, my guess is the banks won’t come knocking as fast as we think. Banks have learned a hard lesson from the residential market. If they play the cat mouse game playing with supply and demand they could spare huge losses, at least that is the thought.

As much as I think we will have some changes this fall my prediction is that 2010 will be an ugly year financially for America. If I were a betting man, which I am, I would cash out of equities put a little money in gold stocks and relax. Not much else can be predicted with the manipulation game in place.

Not sure what impact it will really have but my guess says that gold challenging $1K could have an impact on the future of the markets. It may not be much of a telling sign, but it does show us that many investors are making the move back to portions of the commodity market for safety purposes.

I believe the dollar is on the brink of a major downward move, but we will have to wait and see. As far as commercial real estate, my guess is the banks won’t come knocking as fast as we think. Banks have learned a hard lesson from the residential market. If they play the cat mouse game playing with supply and demand they could spare huge losses, at least that is the thought.

As much as I think we will have some changes this fall my prediction is that 2010 will be an ugly year financially for America. If I were a betting man, which I am, I would cash out of equities put a little money in gold stocks and relax. Not much else can be predicted with the manipulation game in place.