"I then caught your note on China. The social change you refer to is a big deal in both a positive and perhaps negative (in the short term) sense. The consumerism that comes with a developing Chinese middle class is the nirvana outcome that U.S. based macro economists are looking for. However, I believe a growing middle class will also bring about political agitation. This will unnerve many investors.

"I am a big long term bull of China and India. However, there are ways to play the theme via stocks that are registered elsewhere but who have a sizable presence in both countries. I have been looking closely at stocks like global consumer brands and Fuller themes such as infrastructure companies.

"On Nat. Gas. - it is far too cheap. If you look at the price at which LNG is now being shipped to (Europe) it again proves how cheap the HH contract is (1$) less that European equivalent. It should be 50c the other way to cover the additional costs related to shipping. I sense there is a lot of interest on keeping the price low. The curve has been the shorter's friend and the trade continues. Picking up dimes in front of the steamroller has demanded timing skills. The thinness of the Nat Gas market will demand even greater timing ability. Watch $6 on the HH front contract. This is the price at which hedgers manage their forward supply. Beyond this level these guys then have to go to the bank to cover margin calls. This cash flow drain is the last thing these shale players need. They would far prefer to use the money they have in bank to exercise their 'use it or lose it' exploration clause. Watch this space.

"I will have someone joining you in November. Keep up the great work."

Eoin Treacy's view Thank you for your thoughts and I look forward to meeting your colleague at the November 18th and 19th seminar in London. The mass consumerism wished for by many both outside and inside China is still a long way off because so many people still need to hold large amounts of cash in reserve to deal with medical costs and to provide for their and often their parents retirement. Progress is being made on expanding the social security network and making healthcare more widely available but this is a medium-term project which will take time. Even in the event that the Chinese are successful in fostering a consumer culture, it is unreasonable to expect the Chinese to follow a US model. Singapore, Taiwan and Hong Kong offer better templates I suspect.

A more affluent middle class will invariably want more civil liberties but again a Western style democracy appears unlikely. Anecdotal evidence suggests that the Communist Party is paying close attention to the Singapore model where the People's Action Party has held power since 1959. They identify (correctly in my view) that economic growth and rule of law are more important concerns for the majority than liberty at any cost. The Communist Party have delivered economic growth. Rule of law and an independent judiciary are still in the works but progress is slowly being made.

Religious freedom is still a thorny issue and the propaganda machine infiltrates every area of society. One of the reasons that Chinese are up to five times more likely to have an internet blog than Americans is for the freedom of expression that the medium offers, provided blatant criticism of the government is avoided.

I do not predict massive civil unrest in China provided the government continue to gradually improve the standard of living of its citizens, but as with any massive social economic project, there will inevitably be occasional hiccups and these will offer occasional headwinds for financial markets.

There are a large number of ways to benefit from the re-emergence of China and India and these are not limited to investing solely in those countries. I agree that companies benefitting directly from consumer growth in the world's major population centres offer excellent long-term upside potential as do commodity related companies selling them the raw materials they require to fuel economic growth.

With regard to natural gas, the arguments for why prices should advance are mounting but the chart action suggests investors are not yet convinced. Prices have steadied near the upper side of the April to June range but a sustained move above $5 will be needed to indicate demand has regained the upper hand beyond current scope for a short-term bounce.