QUESTION 4: - "Can recent Chinese recessive syndrome (Shanghai Composite Index) make worse the global crisis? If it happens again, could this hurt the S&P500, Nasdaq, DJIA and Dow indexes? At last, how strong fixed the intermarket relationship?"

ANSWER 4: - "Of course, the Asian crisis has strong influence, because all markets are interconnected! First, the situation with a strong dollar is very inflated and does not correspond to the actual economic situation in the United State, which makes US products uncompetitive by the cost of manufactured goods with analogues manufacturers in the world! Secondly, intermarket factors are interrelated.

For example, in Asia (1997-1998), as a result of the currency crisis, there was a deflation, which covered the whole world, certainly has moved beyond and struck the bond and stock markets, including the United States!

Furthermore, be extremely careful with the S&P500, because if the Chinese index rates rapidly fallen down, we shoud expect the falling down not only American indexes, but whole the world financial systems.

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