AndrewBaker

Wall Street Breakfast: Must-Know News

It seems now that the fate of the world economy going forward depends as much on China as it does the US. Given that China has such large dollar holdings and needs exports to the US and western countries to provide the required internal growth, as it is not yet sufficiently self-sustainable, there is a mutual financial symbiosis that requires improved economic circumstances in the US to keep China and other emerging markets in a growth pattern.

In short, we have to pat each others' backs and help each other along: one country cannot do it alone. Given that US finances are still not anywhere near improving, I suggest that when US markets fall back, which could be delayed until after the end of summer vacation time, the emerging economies will do so also. When these economies fall, especially China, they tend to do so very quickly and in greater numbers; so keep watching those overseas investments that you have to make up for a weak dollar. And be sure to be first out when the time comes: there will be some fast movement of funds home then.