Jeff Shek

Stay Out of China (and thus H.K.) Until Wall Street's Mess Settles

Enzio von Pfeil,

DavidLi, makes a serious point. Indeed, if one was entirely scared of US markets, it would make most sense to diversify; as opposed to pulling out of diverse markets. Estimates of China's GDP Growth accounted for more Global GDP Growth, than any country this year (including United States). In fact, one would argue quite quite the opposite of what you have suggested. If US Markets are as shaky as you deem, one would enter European and Asia markets. Unfortunately, European banks were also holding some of the obligations that were affected United States financial corporations. That would indicate it would be smarter to enter Asia as ways to avoid significant risk.

I don't argue or contend that US markets are incredibly shaky. The fall, even post another rate cut, indicates that all is not well. The leaving of O'Neil and now, Prince, state that there is more than enough blame to go around - more or less showing that significant concern is still on everyone's minds, especially the United States.

Granted, the HK Seng did drop 5% today, an astronomical sum, but it is one of the few indices that has the possibility of moving back that in days.