First let me say thank you for reading these website notes, I am flattered that you take the time out of your busy day to read my musings and market thoughts.

Now, on to today’s topic.  Managing investment portfolios is quite similar to the art of using a Bull Whip.  If any of you have ever tried this (I have), it seems so easy and quite effortless and the results are so dramatic.  However, without years and years of practice and a natural talent for this art, the results can be extremely dangerous. An accomplished whip artist can flick a smoke out of someone’s mouth, light a match, cut a newspaper in half, etc.   However, without those 20 to 30 years of daily practice (4-6 hrs a day) the results are severe injury, such as extremely painful cuts, up to and including loss of an eye. The most interesting illustration is when the whip is in motion and right up to the end it is really rather attractive, however, what does a whip do when it reaches an end and there is very loud "POP?"   That’s right; it falls to the ground with absolutely no energy left.  IS THAT HOW YOU WANT YOUR PORTFOLIO TO BEHAVE??? THINK ABOUT IT.

The recent swoon in Chinese stocks goes a long way in proving Thomas Friedman’s theory that indeed "The World is Flat." According to Business Week, wages have risen enough to give a projected 8% boost in domestic consumption this year and don’t forget the Chinese are to host the Olympics and they certainly will make every effort to look and behave their very best for the world to see just how well their government and semi-capitalistic market is working.

As for the US market/economy---why do you think the following is happening as we speak:      

                1. Companies are buying back their shares at record rates?

                2. Insiders are buying their own companies shares at record rates.

                3. Private equity funds exist at all (to, almost every day, buy entire companies)
                    Hint: They are selling too cheaply

                4. Hedge funds exist at all—constant inequities in the stock market.

Well, to say the least, I am still bullish and am constantly taking advantage of both over-priced and under-priced situations.

Again, thanks for reading.

Jack