How many articles have you read in the past few days that have stated explicitly that the sell-off in China CAUSED the drop in US markets? Television personalities (or talking heads if you prefer) have been making similar cases throughout the week. But what happens when the typical, economically challenged investor comes to realize that the sell-off in the US, while possibly sparked by the overseas sell-off, is justified in and of itself? Will these morons in the media be held to account for encouraging investors to hold on despite all signs pointing to a bear market and an imminent recession? On a side note, it seems to me that US investors have grown accustomed to the notion that, in the long-run, the markets must rise. Is it possible that we're heading into a new era where rising markets are no longer guaranteed? I was reading an article (http://biz.yahoo.com/ap/070304/paulson_economy.html?.v=4) where the US Treasury Secretary was cautioning Americans not to view China as our economic nemesis. Why would he say that? Is it possible that he said this because any such view would be disastrous for US markets in the long-term, taking away US entitlement to perpetual stock market growth? Keep in mind, I woke up with the flu (or something?) this morning, so if this post is ridiculous or otherwise incoherent, simply ignore.
Right, so are you suggesting sitting in fiat cash? That's quite a smart proposition, considering the USD devaluation.