Tuesday, January 15, 2008

Effect of US Market Trend in 2008

Did you ever realized that the HK / China Index behave similarly as US prior to 2008; but opposite direction (behaves differently) 2008 onwards?

My guess is that we are now in the Transition period of China replacing US as the Driver of World Economy. However, this process might take quite a long time together with several rounds of adjustments by both Giant Economies.

So is that means HK / China market is now a better choice for investment rather than US?

The answer is: Yes and No. It is because the foreign funds are flowing from various places especially the Western. Any deep impact such as Major Sell-Off or Huge Correction in the US market would still affect the HK / China market, although small sell-off or minor correction might not give much impact.

No doubt there are always few market sectors that could bring you some gains during Volatility or even Bad Time......

No comments: