Dana H.

The Problem of Where to Invest

"We proceed at our peril."

Well, that's life. Unless you plan to kill yourself, there's no option not to proceed. There never was such a thing as a risk-free existence, and this is true more than ever, thanks to the artificially created risks due to irrational government action over the past decades (and especially over the past two years).

Unless you're a day or swing trader, or have great faith in your powers of prognostication, the rational approach is to diversify and hedge against the various risks. Keep some assets in cash, some in precious metals, some in U.S. stocks, some in international stocks, etc. Adjust the weighting of each asset class according to your best judgment of the relative risks of inflation, deflation, collapsing dollar, collapsing U.S. economy, etc.

China Best of the BRIC - S&P

Man, I hate these analyst reports that see everything through a Keynesian lens. I don't give a damn about "fiscal stimulus" (except as an indicator of wealth destruction).

What I want to know is: What is China's savings rate? Is China continuing to liberalize the economy, or are they imposing new regulations as the "cure" for the downturn? Are they letting firms go bankrupt as they should (and as WE should), or are they propping up insolvent businesses with bailouts? These are the relevant questions for potential investors in the country.