rigel

U.S. Markets: A Ton of Doubt Calls for Caution

Le French, while you are quite possibly (maybe even probably) right, how much upside do you think there will be in the bounce before the next leg lower? Also, which sectors are the best plays? I'm staying out if this one. I have a few long positions. However, I'm even worse at picking a top as I am a bottom, and I'm afraid the next move up (if it happens) will be followed by a dramatic and rapid turn down.

The Reverse Wealth Effect

Jerbear, while they arguably could do it, there's very little incentive for them to do so. Sovereign wealth largely funded the booms in the US. If they tried to manipulate oil prices to tank the US economy, those investments would be lost. In fact, as the recent bust happened, foreign dollars stepped in (arguably too early). If you were manipulating a downfall, you might be more careful about picking the bottom.

China has a lot of US treasuries and manufactures a lot of US goods. It's certainly not in their best interest to help orchestrate a US downfall.