Something to think about...

[kidgas]

Total market cap for the S & P 500 is approximately 8.3 trillion which represents about 70-75% of NYSE market cap.

Total foreign currency reserves of China is just over 1.9 trillion. To think that China could purchase almost 17% of NYSE companies is mind boggling. Not that Congress would allow it, but...

 

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[kimberland]

Here's another thing to think about...

people can only buy
what other people are selling.

You want to protect the rainforest?
Then buy the dang rainforest.
You want to keep companies American owned?
Then buy (or at least don't sell) the stock.

But most people don't
because the issue isn't that important to them.

 

[kidgas]

Kimber,
Agree 100%. I am heavily invested and would be more so if I had more cash.

 

[kidgas]

According to the standard & poor's website, the market cap of the S&P 500 is now down to just under 7.3 trillion:

S&P | Indices > Equity Indices - S&P 500 - Index Table

Should note that gold may be a beneficiary of the Chinese foreign exchange reserves of 1.95 trillion:

Gold Investments Market Update - Chinese Nervous about U.S. to Diversify into Gold with Massive $1.95 Trillion Foreign Reserves

 

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[MattThomas]

Not that Congress would allow it, but...

I disagree. Congress would most certainly allow it. We are in a free market economy and I don't think there is really much congress can do to prevent assets for sale to be purchased by an investor.

The US is already paying off some of its debt by selling real estate to foreign creditors, and state and municipalities are even privatizing bridges and such to free up cash.

The question isn't could China do it, but would they do it? My guess is no, since these days cash is extremely valuable to keep on hand and not tie up to anything.

That said, speed + for pointing this out. It is still something to think about, and we should always be mindful of the economic position of other countries.

Thanks!

 

[kidgas]

I'm a little surprised no one brought up the fact that potential investor cash overwhelms that of the Chinese:

Cash on sidelines now 74% of stocks' value; 18-year high | Money & Company | Los Angeles Times

When the floodgates open (and they will especially with the increase in the American savings rate), you want to be able to participate. Of course, no one knows when or from what level. Furthermore, you won't be able to say it's happening until it's well under way. Boy, isn't investing fun.