Sector Selector Review: May 19. 2007

Wall Street Sector Selector
Buying the Right Stocks at the Right Time
Wall Street Sector Selector.com
Saturday,
May 19, 2007
Issue:8
Sector Selector Review
If China sneezes, the world will
catch the flu.

The China Card
This week took me to Nagoya, Japan and Taipei on a Monday through Friday "Asian cruise." The flights were full and the cities were bustling, as usual, but I picked up an article from the "Asian Wall Street Journal" that could have ominous implications for all U.S. investors.

As almost everyone knows, the foreign stock markets, and China, in particular, have been red hot for quite sometime now. Wall Street Sector Selector has profited handsomely from these powerful markets, but now there is growing need for caution.

The article I mentioned contained an interview with Li-Ka-Shing, a Hong Kong entrepeneur and Asia's richest man, the Warren Buffet of the Pacific Rim, who when asked about the Chinese stock market said, "it must be a bubble."

No kidding? Consider this: their market is up a shocking 45% over the last 12 months, 385,121 new individual stock trading accounts were opened on May 8th alone, and their Ben Bernanke, Zhou Xiaochuan, continually voices his concern about the torrid growth of the Chinese economy and the stock market in particular. "Irrational exuberance, Asian style?" Maybe.

All we have to do is remember back to February 27th of this year to figure out that this is a treacherous time, because that one day plunge in the Chinese market touched off a five day rout that wiped out $3.3 Trillion in global equities.

Could it happen again? Of course it could. Will it? No one has a crystal ball, and so Wall Street Sector Selector will continue to profit from the mob psychology sweeping the Pacific Rim, but at the same time, we'll continue protecting ourselves by staying diversified in our sector positions and keeping a close eye on the Greed and Fear Index for the region.

Right now, greed is firmly in control, but if we notice fear raising its ugly head, we'll be bringing our money back to U.S. shores.

Today's a work day around home in Bend. I'm working on Sector Selector, my wife is in the garden, and my son is racking up volunteer hours for National Junior Honor Society. Tomorrow, some fly fishing and a picnic at Fall River.

Have a great weekend.

Your partner in prosperity,

John

Over the past 56 years, the Dow has lost 538 points between May and October while gaining 11,691 points between November and April.
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Since, 1939, the 3rd year of a Presidential term has always been an up year for stocks. 2007 is holding true to this pattern, so far-------------------------


John NyaradiWall Street Sector Selector
(541)-480-8584
www.wall-street-sector-selector.com

John Nyaradi is Publisher of Wall Street Sector Selector, a division of Ridgeline Media Group, LLC. All information presented herein is deemed to be from reliable sources, but we cannot guarantee its accuracy. All articles in Sector Selector Review represent Nyaradi's opions. Investment recomendations presented herein will change, and readers are strongly advised to check with their investment counselors as to the suitability of any investment presented herein. There is risk of loss in all investing activity and the Disclosure Statement presented at www.wallstreetsectorselector.com applies to all material in this report.
John Nyaradi invests in all of the funds cited above and follows the same buy and sell signals at the same time they're presented to subscribers.

Nyaradi can be reached at (541)-480-8584