http://www.dailyreckoning.com.au/dow-theory-2/2007/09/17/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 http://www.dailyreckoning.com.au/dow-theory-2/2007/09/17/comment-page-1/#comment-3270 mark porta Tue, 18 Sep 2007 12:27:02 +0000 http://www.dailyreckoning.com.au/dow-theory-2/2007/09/17/#comment-3270 Stocks are going higher because they are getting bought and not sold. The reasons why may be more complicated than we want to delve into, but suffice it to say that the western economy is much more globalthan it has ever been. In essence, the world is not going backwards.As long as western firms are able to hook onto some returns from a world increasing its standards of living, they will be attractive to the large number of investors around. And western firms have a high comparative advantage at the moment, against firms from second and thirld worlds.Until every chinese and Indian, to start with, has the same standard of living as us, given necessary hiccups, stocks will go up. Of course, the hiccups can, and will, send people broke. Stocks are going higher because they are getting bought and not sold. The reasons why may be more complicated than we want to delve into, but suffice it to say that the western economy is much more globalthan it has ever been. In essence, the world is not going backwards.As long as western firms are able to hook onto some returns from a world increasing its standards of living, they will be attractive to the large number of investors around. And western firms have a high comparative advantage at the moment, against firms from second and thirld worlds.Until every chinese and Indian, to start with, has the same standard of living as us, given necessary hiccups, stocks will go up. Of course, the hiccups can, and will, send people broke.

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