Stock Picks and Penny Stock Picks of Chinese Companies
Most of Asia closed up with the exception of China. The Yuan test continues as China is actually being proactive and testing what its merchants can sustain in order to gauge the approach the Chinese central bank will implement to fight inflation. China continues to be the largest owner of US debt. Many penny stocks are coming out of China. There are many reasons to follow China with the aforementioned ranking close to the most important. We have released several stock picks of Chinese companies in the past. Europe is trading up today with the exception of Switzerland. The world markets seem to be skipping along with the nice move in the US markets. So it’s easy at this point to look at the current issues the US financial markets face and take a very bearish attitude and call for huge market correction because of a huge over valuation in stocks. There are always a litany of justifications and fundamental or technical arguments these economists will come up with. Other than 15 plus years experience in almost every capacity in the securities business, I base my current premise on the prevailing direction the DOW will trend on one thing that I’ve noticed recently, HOPE.
Yes, HOPE is the prevailing indicator that leads me to look at long term option positions on DOW futures contracts 1-3 years out from 12,000-15,000 respectively from 2011-2013. The fact that there is actually hope in the third world to increase the living standard of those that have the least is starting to bridge the income disparity gap. Central America, South America, Africa, Malaysia, and Indonesia among other countries are all in various stages of expansion based on the exportation of non-durable goods. These staples of life increase the employment of those that are willing to work for the lowest wages but have skill sets to fit the work. As the business grows and tasks become more complicated, a supply to demand variable in available skilled laborers increases the wages that are earned by the working class. As in the textile boom in the United States where we replaced the UK and Europe as the nexus for skilled production, there is a similar revolution occurring in these locations, but it is based upon non-durable goods exportation. Some of the next hot stocks in the stock market are coming out of Latin America and Asia.
