Monday, December 24, 2007

Cash Infusions

In a time of year where most of us could use a cash infusion, Wall Street's biggest brokerages are all getting them. The interesting thing to me here is where the money is coming from. Sovereign wealth funds from overseas, particularly the Middle East and Asia. This is truly a testament to how strong the global financial system is, and how far we've come. Imagine this happening even five or ten years ago, let alone 40. There would have been public outcry and a protectionist wall thrown up. The same goes for those crying over the exporting of manufacturing jobs. It doesn't mean our economy is getting worse, its actually getting better. We are leaders in technology and skilled work, and the quality of our workforce is increasing. That is what will give us an edge in the future when more countries are on the same level as we are economically.

So as we head into 2008 and beyond, we need to embrace the rise of other economies, not shun them. As far as today's action goes, there are a few buyers out there, and little volume is allowing them to have an impact. Don't put to much into what happens today. I like the trend though.

By the way, the energy portfolio has exploded in the past few days, up 5.5% collectively in less than a week! I'd be careful on the agriculture stocks here, they are getting a little overheated. I'd wait for a little pullback to get in there.

Have a wonderful Christmas!

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