 Numbers like that would sure make the rest of the world feel better about China. They might even put to rest some of the worries about a slowdown in China’s growth as the government tightens standards for bank lending.
 China’s imports climbed 100% in January, according to projections by China International Capital. Exports rose a paltry 30%, the company estimates. The official numbers on Chinese imports and exports are due out on February 10.
 In January 2009 imports slid by 43%.
 Domestic consumption of durable goods such as cars and household appliances are likely to have driven the import surge since China’s manufacturers import parts and subassemblies for those goods from Japan, Korea, and Taiwan.
It’s my job to rain on parades (and hand out umbrellas in down pours) so let me do just that here.
The first three weeks of January saw run away bank lending and easy consumer credit. The government’s tightening isn’t likely to be reflected in January trade numbers to any great extent. I don’t think we can judge how much, if at all, that tightening will slow growth from this data.
Ed, thank you very much for the lesson. I will strat working on it.
Saurin,
You asked:
1. Buy low, sell high. It may be a cliche, but there’s a good reason for it.
2. Don’t be afraid to sell low. It beats selling even lower.
3. Learn how to read a financial statement. Take an accounting class if you haven’t already. The inherent value in any business is located there.
4. The hardest aspect of any business to judge is their growth prospects. Even professional stock analysts get this wrong all the time (how many times have you heard company X’s earnings were higher or lower than analyst estimates?). There are two aspects to growth: one, the company itself (see #3); and two, the overall economy (or the economy within which the company operates). This part requires some knowledge of macroeconomics. However, even professional economists can’t agree on economic prospects, so how are you supposed to determine the economic future? The truth here is you have to know enough to be able to read what the economists are saying, AND make your own educated guess.
5. Know thyself. Specifically, know your own tolerance for risk. How long can you watch your stock take a beating before you sell it?
6. Even more important than #5, know your stock. When you see your stock dropping or rising a large amount, do you know why it is? If there’s no news on the stock itself, what about the sector? The industry? Or the overall economy (see #4)?
These rules are JUST a starting point. There’s plenty more to learn.
As I said at the beginning of the blog, that it was off the subject. But anyways the entire text is spoken by OSHO and not Dalai Lama. He is a politician and not a spiritual leader (although the followers think of him as such).
Mr YX if you had read the entier comment the text is about Tibet and not India. I know India has its own poblems. And after immigrting to USA I realize that it is far more beautiful to be just a human being and not an American or an Indian or any other conuntry. Same applies for all religions too.
And Mr. Sigli, if there are no emotions, one cannot be in love, or prayer or meditation. Please rethink. If the stock market falls and you loose all your money then I will see whether you have any emotions?
Now about the market; Can anyone tell me a few good rules about investing. When to buy and when to sell based on some analysis. Right now I just blindly follow Jim’s advice (since last 6 months) and have been bitten a few times but mostly he is good.
thanks
Saurin
Thanks andante. Good info.
However, Brazil’s central bank rates have been one of the world’s highest for at least a year now. I don’t see that as a game-changer at the moment.
I will agree that the European fears seem to be driving people into dollars. But out of Brazil? That makes no sense, although the markets don’t always make sense.