Thursday, November 29, 2007

Are The Financials Making a Comeback?

I watched with interest yesterday as all the business channels reported on the Arab investment in Citibank. They were tripping all over themselves with glee over the possibility that this was a signal of a comeback in the financials sector. While I do believe this is a good sign that our depressed economy will recover from the housing and financial woes, I wouldn't put too much emphasis on this one event as a sign of a speedy recovery. I think it's wonderful that the Europeans, the Arabs and the Chinese want to invest their money in the U.S. While this could be attributed in part to the slide of the dollar against foreign currencies, making our stock prices seem cheap, I happen to think it's a vote of confidence from the world at large as to how resilient our economy and our businesses can be. While we may all be suffering to one extent or another from this downturn in the stock market, we should take heart in the fact that people from other countries are not so doubtful as to to future success of their investments here. As I've said before, it's always better to buy when everything is on sale. While we may be faced with further declines before things start to improve, I think we are looking at a wonderful buying opportunity right now and for several months to come. Like one reporter was saying, if you want to make this a time to remember, be the one buying when everyone else was selling. When the turnaround comes, you'll be so glad you did.

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