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Glass half full? Glass half empty?

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Week in review 030109 to 030709

We are officially in Obama bear market (source: Bloomberg), in other words, the stock market (i.e., Dow industrial for most people) dropped 20% since President Obama took office in Jan 20. Yesterday S&P 500 briefly touched 666 (the number of devil), pretty scary, huh? I am sure this economy/financial crisis has been the hot topic in many kitchen table, or office cafeteria. The financial media is also taking the crisis as oppertunity — we have seen numerous experts, panel discussions, such as the “Help Wanted” talk last night on CNN money, which is mainly talking about the Feb. job (loss) number: 650,000. This number is actually small, if we put it into perspective that 20 million Chinese migrant workers already lost job since the end of last year (read my friend Bo Peng’s article if you are interested).

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Who cares Mr. Market the most?

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1) Traders, including the grannies sitting in China stock brokage houses.

2) Hedging fund: people who have short positions, options…all these are closely related to the general market, and can have a wider swing than common stocks.

3) Mutual fund: because they have a large portifolio, they are exposed to the general market condition (weak, strong, swing etc.)

4) Economist and reporters: it’s economist job to predict the economy; and it’s reporters’ job to report the market.

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