2010
06.21

As of today China has finally agreed to allow it’s currency to appreciate against the dollar.  Supposedly this will keep interest rates low and continue fuel growth in the world economy.  Will this really help economic recovery?  China doesn’t thinks so.  According to various news articles China’s leaders doubt that these actions will help to do much of nothing for helping economic recovery.

As for stock market sentiment, the China currency helped the markets to rally for most of the day untill the rah, rah news faded and the markets closed down for Monday’s trading day.  Economic recovery will defintely take some time, and the world’s leaders are scrambling to do anything they can to assist the recovery, but no solution will be immediate.  The China currency news optimism was definitely short lived as we saw today, and we probably will continue to see more uncertainty in the markets until a better solution to Europe’s debt problem is proposed.

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Until next time,
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