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USA Debt Limit Drama !

It has been few weeks since I got chance to write my blog. Lot has happened since I wrote about summer blues market was going thru. I was busy taking kids around. Just came back from Alaska cruise vacation - got nice break !

Markets have gone nowhere in last few weeks. It went up due to some optimism on earnings reports and came down hard last week due to all drama in Washington. I am sure markets did not wish for kind of grid-lock they saw last week. Be careful what you wish for ! Tea-party politicians were acting all crazy not even listening to their own GOP leadership. No wonder their un-popularity has gone from 22% last year to 47% this year. GOP leadership should learn from last week's events and be careful whom they put on ballot in 2012.

After hectic back-door negotiations, finally Washington has come to an agreement on debt-limit and spending cuts. At this time, any deal is good deal since it would save AAA rating for US debt. Futures are reacting positively and we should see up day in markets tomorrow. However be careful in putting new money in markets since this drama would continue till next year.

Right now, I am looking at some of the Chinese and Indian Internet companies to find some value. Check these out for potential reward/risk: RENN ($10), DANG ($11), REDF ($9) and SIFY ($4). Almost all of these are mini-versions of some companies in USA. e.g. RENN is Chinese FB, DANG is Chinese Amazon and so on. Hopefully these companies would provide same type of returns in what Baidu did. However wait till results for their first quarter as public companies are out.

That's all for now. Have exciting week !

/Shyam

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