Wednesday, March 10th, 2010

The New Gold Rush: Dollar is Down
– China Rises Up

Investors are rushing into gold and driving down the U.S. dollar. For the first time since the height of the banking crisis, the value of an ounce of gold has topped the psychologically significant ceiling of $1,000.
Why the stampede? Investors are losing confidence in [...]

It seems for now the world is watching China as a benchmark to compare the remaining global markets. The fact is they have developed into the main financier for the U.S. Now more than ever, China is receiving globally recognition which in turn is increasing their importance in the eyes of institutional investors. On Monday’s [...]

Shanghaied by Shanghai!

Shanghai’s key stock index is enduring unprecedented volatility after registering its biggest weekly loss since February. Today, the Shanghai Index rebounded and ended above 2,900 points after yesterday’s slide. On Monday China’s main stock index tumbled another 5.8%, leaving it down 16% for the month. At the end of last week, Shanghai tumbled [...]

Shanghai’s key stock index dropped more than two percent today as investors took profits after a central bank announcement said it may fine-tune the macroeconomic policy. The benchmark Shanghai Composite Index tumbled 2.11 percent, or 72.17 points, to close at 3,365.33 points.
The Shanghai market is still up approximately 88% from last year’s lows. Corporate valuations [...]

Why A Strong Dollar Is Good For China’s Economy

(Why and how you need to hedge against the greenback)

Here’s the latest alarmist headline from TIME Magazine: “Replacing the Dollar: China’s Big Plans for Its Currency” Should investors pay heed?
A lot of China watchers have been mystified by Beijing’s complaints about the stability of the U.S. dollar. [...]