Blogs

Interesting MSNBC video clip explaining Goldman Sachs's unbelievable profits in the latest quarter.

USD currency value will not likely continue to decline rapidly vs. Yen nor Euro nor Ren Mi Bi from now in Oct 2009 to mid of 2010. It is in the best interest of China to keep USD strong or at least stable/stagnant againsts other key global currencies as well as Ren Mi Bi. Why? It is simply because China central bank holds way too much USD-denominated US-Treasury bonds as reserves, and therefore any further decline in USD value will not be good to China's wealth. Read more....

The percentage of households earning less than 30,000 USD per year is astounding 20.0 % of all US households; and this 20.0% low-income earners contribute to extremely high delinquency rate (approx. 22.5%) and default rate (approx. 38%.) (sources: Equifax, Moody's) This trend does not seem to stop either any time soon as unemployment rates are expected to be persistently high (likely above 10% for considerable numbers of years - 2-5 years). Read more...

Excluding the potential impact of a long-term depreciation of US Dollar against other global currencies over the next 5-10 years, currently at S&P500 P/E level of 18.8x, the valuation of the US markets on average is slightly higher than the 16.3x average P/E since 1880. Does this mean US stock market is overvalued? We do not think so.

According to Jim Rogers, Gold could hit $2000 over the next decade. Here is the interview clip:

For investors and politicians to understand People's Republic of China and its dominant position nowadays as the biggest creditor to many developed countries and the fastest growing emerging markets, anyone should increase their exposure to the early history of China and hence are highly recommended to see the newest China's movie blockbuster "Jian Guo Da Ye" ("The Great Cause of Chinas Foundation/Founding of the Nation" or simply "The Founding Of A Republic") explaining the tale of the establishment of the Peoples Republic of China, Which features an All-Star cast that includes: Jackie Chan, Jet Li, Andy Lau, Donnie Yen, Zhang Ziyi, Zhao Wei, Tony Leung, John Woo, and Chow Yun Fat. Here is the movie clip of "Jian Guo Da Ye" ("The Founding Of A Republic")

Julian Robertson on the Markets and Economy (CNBC interview on Sep 24, 2009). Read more.

There are several key lessons human beings should learn from the current economic crisis. Read more...

Recently, CNN and CNBC interviewed Warren Buffett on recession, crisis, and markets. Read more.

Relationship between US and China is now deteriorating. Read more...