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Retail Investors Are Missing the Boat
Retail investors refuse to globalize their portfolios. This will lead to massive under-performance and slimmer retirement funds.
http://www.bellaonline.com/articles/art44029.asp
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FINANCIAL MARKETS SUMMARY for the WEEK ENDED SEPTEMBER 5,2008
It was a brutal week for stock markets in the US and globally. Stock markets globally suffered their largest weekly decline since September 2001.
Stock markets globally are worried about a weakening US economy. There was more evidence of a weakening US economy with today's unemployment report which showed the US unemployment rate rising sharply to 6.1%. This is the highest rate for unemployment in the US in 5 years.
Adding to the gloom this week were many US technology and industrial firms stating (actually complaining loudly) that the higher US dollar is leading to very steep losses in new export orders for their businesses which will result in a sharp drop in their earnings.
The US dollar has had a huge move up in the last 6 weeks. This move up has been greatly helped along by the Federal Reserve and the US Treasury Dept.
As I stated in a prior newsletter, the Feds are doing this to again bail out Wall Street - this time to help Wall Street cover their huge and very stupid bets in shorting commodities across the board.
As I also stated in a prior newsletter, the higher US dollar has kicked out what was the only remaining strong leg left in the US economy - exports. But once again, the Feds have sided with Wall Street against Main Street. The US needs a lower dollar in order to compete economically in the world.
I hope to hear from you sometime soon, either in the forum or in response to this email message. I thrive on your feedback!
Tony Daltorio, Investing Editor
http://investing.bellaonline.com
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