The market had a late day sell off. It is still too early to be aggressive buyers. I will buy selectively if market continues to go down. IBM earning is very stable and did not went down last year. I will be interested in it around $120. I do not see European debt problem blown to a crises but it will have some impact on government spending (a warning to many countries).
How to balance inflation and growth is huge task for Chinese government. Given the wage and raw material increase, I do not see how they can contain inflation without bursting the real estate bubble. Containing inflation probably will not be a priority this year.
As Greenspan pointed out, stock prices (wealth effect) will have an impact on real economy. If stock market continues to go down, it will have an negative impact on GDP 3 months from now.
When I start this blog and my portfolio, I stated that my objective is to outperform the market while have much less volatility. As of today, the market is down 2% since I started. My portfolio is up. But more importantly, I only had one negative day in more than 3 months and the volatility is less than 25% of the market.
Closing value
Portfolio 1 (U$): 110715
Portfolio 2(C$): 80421
Closing value
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