Long-time Naysayer Thinks Markets Could be Okay

Ever the cynic, Stephen Roach, Morgan Stanley's chief economist, no longer feels that the apocalypse is upon us. In fact, Roach is quiet optimistic about the market, and he cites such trends as corrections in the housing market, a weaker dollar, and stronger domestic demand in Asia. To me, the most compelling factor cited is the last one - the increasing domestic demand in Asia. The implications behind this trend are incredible. As Asian markets have grown and wealth has been created, the emerging middle class in certain Asian countries have become aggressive consumers of products made by companies that traditionally exported goods overseas. As these same Asian consumers develop a demand for U.S. made products, the global balance will become clearer.