Tuesday’s Drop: Is it just China’s bubble? Or is it America’s too?

It’s been three days since Tuesday’s large point drop, and the markets haven’t really recovered yet. Should we be concerned?
Chart from Yahoo! With Thanks.

This is just a personal opinion: but I’m not concerned at all. Why?

  1. The markets have risen steadily for months without a correction. In fact, many people believe that a correction was coming anyway.
  2. I’m not speculating in stocks at the moment. I do have some positions, but I have sold out my Tech stocks (taking a loss in the process).
  3. I don’t use money that I need or (I hope) will ever need.
  4. I wasn’t totally invested. In fact, up until this month I was sitting 25% in cash. Right now, I’m still about 11% in cash.
  5. I’m investing for income at the moment anyway. The stocks I have produced a fair dividend, albeit with some risk.
  6. With cash waiting, a correction like this could open opportunities to buy good stocks at attractive prices.

I don’t usually blog about the stock markets at the moment, since I don’t really have much expertise in them. But my hand was forced when I read John Mauldin’s latest newsletter Global Market Brief: China’s Engineered Drop written by George Friedman.

In the letter, he notes some scary statistics about the balloon that was developing China’s stock markets:

In January, the number of total traders on the Chinese exchanges grew by 1.38 million, an increase of 134 percent from a month earlier, while stock turnover was up 700 percent from a year earlier.

Given the penchant for Chinese to gamble anyway (and Taiwanese, I may add), whenever the stock market or property prices start to rise, or the lottery jackpots get bigger, we will see this phenomenon. Friedman notes that this is the first time that Chinese stock markets have had a major effect on Global Stockmarkets. One thing I’m sure about, this is not the last time!

I’d certainly welcome more informed comment from my readers…

Ideas2earn.com: An idea to make money – Every Day!

Many visitors to this blog are interested in ways to make money as well as how to manage it. So today’s suggestion isn’t so much of a moneyspinner, but a website about moneyspinners. Ideas2earn.com has a challenging promise for its visitors: they will provide you with an idea to earn money each and every day for a year. And it’s free!
Naturally, you need to do full research on each and every opportunity you are interested in. Only this way can you be sure that you are not investing in a dud. Do remember also: it’s much better to choose an opportunity or investment that you would enjoy doing, not just one that would generate a lot of cash. Investing should be fun. It should be something you have a passion for, as well.

But if you have been looking for ideas, Ideas2earn.com should be able to provide you lots of them. You’ll need to add a dash of ‘je-ne-sais-quoi’ (Lit: ‘I don’t know what’) yourself to make it your idea!

Updates to WP 2.1 and 2.0.7: Upgrading is here

There are new updates for users of Wordpress, in fact, both branches of users are updating. Judging from the updates, WP 2.1 is now considered to be the successor, and WP 2.0.9 will only receive security updates for the time being. As a result, I’m thinking of switching my blogs to the newer branches. I don’t know how easy it will be for this blog to update to WP2.1, I don’t fancy the switch just yet. Anyway here’s the news release:

We’ve got a new bugfix and security release for both of our actively maintained branches of WordPress. Version 2.1.1 includes about 30 bug fixes, mostly minor things around encoding, XML-RPC, the object cache, and HTML code. It’s available for immediate download on our download page.

Version 2.0.9 only includes the security update, which was around the code we use to prevent XSS. You can download it from our release archive. As a reminder, we’ve committed to proving security updates to 2.0 through 2010, but all new features and development are going into the newer branch, which is at this time 2.1.