What a dismal ending to 2004/What will 2005 bring?
The Dow could not bring us 11,000? pretty dismal. Well with the Dollar getting weaker and the american economy getty puddling along. I would have thought 11,000 was attainable. But I was wrong. Well I don't see anything ging better next year.
As a matter of fact. Textile workers could lose 680.000 jobs soon. Because the Bush Admistration refused to extend textile quotas, meaning all of your clothes could be made in China. Why would foreigners invest in the U.S. when our goods and service are shrinking by the day. Invest internationally and you can't go wrong. Compare the ticker symbol EFA, an all inclusive international fund with the Dow. And you see what I mean. Remember the Euro will get stronger and the Yen, Pound and even the Canadian Dollar.
If the Euro gets stronger we could see the loss of the Dollar in 2005 as the Fiat currency. Meaning no more low interest rates us. And we'll have to borrow money for trade. Currently we need to sell foreigners 2.5 Billon Dollars a day in bonds to finance the need for the U.S.. There have been several day already that the quota has not been met. If you think 2004 was bad look out for more of the same, or worse, in 2005.
Happy New Year.
Happy New Year?