So last week when everyone was having a panic attack because the market sank, we were not joining in the hoopla, mostly because we knew it was going to happen sooner or later. Relax, don't panic, it happens...that's what we said.

Well, a little more than a week later, we've seen a bit of a bounce-back I think, particularly this week where we just had 4 days straight of the STI finishing in positive territory.

There have also been some developments out of China, the main culprit of the global selloff last week: Hank's Here! (well...there, in China, I should say since I'm in Singapore). US Treasury Secretary Henry Paulson (a lot of people call him Hank) was back in China for another round of the strategic economic dialogue with top government officials, where he continued to urge reforms.

As we said in our blog last week, reforms are good! Sure it may have sparked a worldwide meltdown, BUT long-term, its a good thing. Additionally, the fact that Secretary Paulson is in China for more discussions should also help you breath a sigh of relief, mainly because he's been received extremely well by the Chinese ever since taking up his new posting, far more than his predecessor.

One of the key reasons is that in the private sector he developed a very good relationship with the Chinese, so he was already a very well-known, respected individual in China when he came to the table to offer his opinions and thoughts. In his current capacity, that only adds a bit more weight to what is discussed on his visits to China, and when he speaks as U.S. Secretary of the Treasury urging the Chinese to continue reforms.

It almost adds this comforting feeling that he is in China a week after the selloff began. And in an odd way, I think it may have just helped ease the panic attacks of some around the world...the calm after the storm.

Just my two cents, but I'll keep saying it, still, don't panic!

As always please see your licensed financial advisor before making any investment decisions.

-Curtis Bergh