Selling iShares Malaysia as Inflation Hits Asia

May. 5.08 | About: iShares MSCI (EWM)

I need to raise some cash, and I am worried about global inflation beginning to hit the Asian countries hard. While China will subsidize itself to the nth degree since they are rich, and India is doing the same to a smaller degree - the smaller countries don't have the same horde of reserves. With Western governments continuing to flood the world with currency (something I don't see changing anytime soon), global inflation will only continue to accelerate and the normal everyday people of Asia are going to get blasted.

Everyone is cheering the dollar because they think Europe will need to cut rates as their economies slow down, but frankly if they cut that will just flood the world with more euros. So Western currency will be flooding the world - creating even more inflation over and above what the US (mostly) and UK/Canada are helping to create now

I do still like Malaysia's long term story as a natural resource exporter, but this ETF has a lot of domestic service names which, if the story there is anything like the service sector in the US, when its populace gets hit with a large spike in inflation, I can imagine the people will be struggling. And they spend much a much higher percentage of income on food than we do.

I have a nice profit here on a country ETF, iShares Malaysia (NYSEARCA:EWM) of nearly 10% from where I bought in mid March [March 17: Restarting Stakes in Malaysia and Singapore]. Selling 700 shares in $11.90s (bought in $10.90s 6 weeks ago) - this was a 0.7% stake in the fund.

Disclosure: No Positions