To: tejek who wrote (124795 ) 10/23/2012 7:44:13 PM From: RetiredNow Respond to I agree with you on China. I recently bought a Chinese ETF. It may go down in the short run, but I typically hold things for many years. The US is a different story. When China catches a cold, it is because of Europe and the US being down with walking pneumonia. So yes, China may have slowed from 12% to 7% growth, but what does that mean for Europe and US economies? We know that Europe is already in a recession. We also know that future earnings guidance has been lowered for 7 out of 8 companies who have reported earnings so far this quarter, which typically means recession now and in the future. We also know that many of our manufacturing indicators are showing not only slowdowns and contractions, but significant input price increases, which means margin pressure. Lastly, whoever gets elected, we still have to get through all the fiscal cliff negotiations. All told, this is nasty business for the US and isn't really priced into the US stock market.
