China sneezed

It is becoming extremely clear that when China sneezes, Australia is the first to catch the cold. And not just the resource sector.

We often eat at a particular Chinese restaurant in Albert St when we go to the Opera House for events. You should see the number of Chinese tourists, in busloads, eating a meal there. They troop in and they troop out. China is quickly becoming Australia's number one source of tourism dollars. The Chinese tourists are also becoming better dressed, carrying expensive Japanese camcorders and cameras. Soon, they might even own that restaurant.

The Chinese government is tightening credit. Banks are required to hold higher reserves. Consequently, the market fell yesterday. Libyan event is minor stuff. Wall street 73 point rise had no effect on our market. That is, NO EFFECT.

The saviour today is the price of gold is up due to ME unrest... and Chinese hoarding. And price of a barrel of oil is up too. And gas, too. I hold a lot of gold and energy stocks. The general market will be down today but I hope to collect alphas.