If China can prop up the U.S. gov't by buying Treasuries, what effect will they have on our stocks

1/169/2014

[RoosterRedux]

I posted an almost banal article tonight on FR entitled...

China's Neway Valve (Suzhou) to be Listed On Friday, First in 14 Months

The bottom line of this matter is that some investors (me for one) have noticed that the U.S. stock markets seem to have a power beyond U.S. investors.

This raises the question...if China and India (and even Russia) can create billions within their own economies...why can't that wealth flow to stock markets which contain stocks which can and will benefit individuals living in such economies.

I say this because I bought a biotech ETF last week and have seen it climb 4%+ in only a few days.

Is this proof of anything? Well, no.

But, doesn't it stand to reason that China and India and Russia would invest in U.S. companies who are also serving their markets.

[1010RD]

Good analysis, but you might have the exact order wrong. Why do you think Japan will go down before Europe?

[Vince Ferrer]

Good analysis, but you might have the exact order wrong. Why do you think Japan will go down before Europe?

I put them first because of their high level of debt and their demographic implosion. The US I put last because we are not as bad demographically, we have an energy boom, and dollars are the reserve currency. Europe I just put in the middle. I also think it is very possible China will go down before we do as well. They are getting old faster than Japan.