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Thank you Ted. Good article. Just as one hope the BRIC economy is one of few brighter spots in the world economy. It is also slowing down and trending downward...
No place to hide. I'm 45% bonds, 55% equities now. Thirty five percent is foreign equities. the mad rush into the dollar is clearly an overreaction. It will have to even-out at some point.
Reply to @catch22: The whole currency thing to me is a game of musical chairs where all the chairs are broken in some fashion. You might get a chair, but it'll probably tip over anyway.
Ya, I tried twice along the way to manage to fix it so that I could LIVE in British Columbia. Ah, life. "What a long, strange trip it's been." (Apologies to the Grateful Dead.) So far, anyhow. I can't help but to jump into this Conga Line with a bit of disgust and cynicism. "A camel is a horse put together by a committee." The world's governments which are not run by juntas seem to have made that phrase their Mission Statement. It's going to take a lifetime for the Euro Zone to get its shit together. In the meantime, the Greece thing will be decided and the panic will be over. And a big bunch of us will take a big loss. Indirectly, we will ALL lose. Our leaders would have done better stepping back and letting some Kindergarten kids in to run things. ("A child of five could understand this! Quick! Send someone to go fetch a child of five!" ---Groucho Marx.)
......Hey, "Catch:" Ya, I suppose they are connected. I just used the M* Instant X-Ray again last night. I'm about 1.5% in Europe. 19% domestic. The rest of my equities are in Asia. I'm top-heavy in bonds. It's PREMX and also the portion of MAPOX that's in bonds. It's like BERIX, holding both stocks and bonds. I recall that MAPOX holds about one-third in bonds.
Reply to @Investor: Canada's bubble is nowhere near the magnitude as the US as their lending practice is substantially tighter, and I am not sure if the problem is widespread. Subprime mortgages have different set of risk compared to rapid rise of property value. The latter is likely to correct itself.
Expectations on the street that China continues to grow near a high single digit is unrealistic, let alone sustainably. No doubt the slowing demand from Canada will hamper its export growth. At the same time US is the single largest importer of Canadian oil. One would expect the demand continue to grow as the pipelines will be build across the boarder.
Comments
http://seekingalpha.com/article/611141-china-signs-that-a-hard-economic-landing-is-turning-into-a-crash?source=yahoo
I would be very careful during these times
You noted: "the mad rush into the dollar is clearly an overreaction."
Not when related to an apparent rush from the Euro, eh?
Regards,
Catch
......Hey, "Catch:" Ya, I suppose they are connected. I just used the M* Instant X-Ray again last night. I'm about 1.5% in Europe. 19% domestic. The rest of my equities are in Asia. I'm top-heavy in bonds. It's PREMX and also the portion of MAPOX that's in bonds. It's like BERIX, holding both stocks and bonds. I recall that MAPOX holds about one-third in bonds.
Expectations on the street that China continues to grow near a high single digit is unrealistic, let alone sustainably. No doubt the slowing demand from Canada will hamper its export growth. At the same time US is the single largest importer of Canadian oil. One would expect the demand continue to grow as the pipelines will be build across the boarder.
http://www.interest.co.nz/opinion/58937/neville-bennett-worried-major-housing-bubble-canada-may-cause-international-distress
"Private debt is huge in NZ and Canada (about 150% of GDP)."
http://www.cbc.ca/news/business/story/2012/03/16/td-overvaluation-debt.html
Slowing demand from China (both for goods and for property) might be the last drop for bubble to burst. We will only know after the fact.