Taking a look at the past week with all its ups and mostly downs, I am still wondering what was all the fuss about? And are we going to see more of the same next week?

As we all know by past experience “Every time the Dow sneezes the ASX catches a cold, sulks and then takes a few days then to recover.

Now a interesting fact has emerged that you might not be aware of is that in the Chinese share market, which is full of domestic investors (only 47, yes 47 foreign investors are authorized to invest directly in the Chinese market),

Now how that shook the bigger, deeper and supposedly more sophisticated markets in Europe, Australia, Japan and especially the US. Is what I can not work out?

The only reason that makes any sense to me is, we know the Chinese Economy has been merrily galloping along and increasing on a yearly basis at around the 10% mark. This has been going on for a while so just perhaps stocks have become a tad overvalued and there had to be a price correction.

I am not an economist just a poor share trader so what do I know?

But one thing that I do know is,”I Love Downturns.”

And as I have said before it is time to look out for quality stock which you can buy at bargain prices. And that is exactly what I did. I snaffled up a few more Oxiana (OXR) actually cheaper than the first lot I had purchased which of course lowered the average price I originally paid.

This is called dollar averaging. This occurs when have bought several lots of the same stock over a period of time at different prices i.e.

1,000 shares at $1.00, 1,000 shares at $1.50, and 1000 shares at $2.00 this averages out 2,000 shares at an average price of $ 1.50 each

All you do is divide the total of the shares in this case 3,000 by the total amount you paid which is $4.50 the answer is $ 1.50

Here endeth the math’s lesson, Time to put the feet up and wonder what the market will will be doing next week.