mkt comment as of 08 08 2008

Market struck a remarkable turnaround today in line with China's opening ceremony. S&P increased 2.39%. The concerns over global economy and strong dollar pushed down the oil price, boosting the stock market. Global economy is on the brink of meltdown: ECB hold rate on hold in spite of its increasing inflation, UK; Spain shows cracks in housing market; Asian economies are facing stagflation. This is just the begining of global slowdown, while US slowdown is at least half way through. Where are you more willing to park you cash - US. Strong capital flow boosted the US dollar. Imminent global economic meltdown indicates sagging demand for oil, lowering oil demand too.