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Thread: The day for bear market is coming?

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[quote=APAULT,257088]I don't think the subprime issue has greatly hurt the US.  It is a symptom of some of the problems that the US has, but it will not have too great an impact on the real economic activity.

The US economy has some problems but it is still nowhere near a recession.  Furthermore, the rest of the world is healthy and will provide the impetus to keep going.  On that basis I do not see a bear market in the near future.  We are experiencing a 'correction' where some investors will consolidate some of their gains.  The Chinese economy is still growing at 11% a year and will continue at or near that rate for some time.  So part of what appears to be a bubble is in fact reasonable expectations of profit in the future.

Inflation is the one concern internationally.  So far governments have taken appropriate measures to limit it but these do reduce production so we should expect some slowing of economies.  If you are a true investor I don't think you should be too concerned at this time, if you are a short term investor (effectively a gambler) then you might choose to avoid the risk of a bit more correction, but no way is a real bear market developing (yet!!).[/quote]

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