George Liu

Long/short equity, value, growth
George Liu
Long/short equity, value, growth
Contributor since: 2011
Company: Lion Fund
Hi Freddy,
The sterling would not have experienced a precipitous plunge without Osborne's austerity measures. Now, if the U.K. were in the Eurozone, then that could perhaps be a different matter as it wouldn't have control of its own currency. But it does, and countries with control of their own currency have proven significantly resilient to currency depreciation. Take Japan for example. It has a 230% debt-to-GDP ratio and its yen, until a few months back, was one of the strongest currencies in the world. The only reason it has weakened somewhat as of late is because of an increased aggressiveness of monetary and fiscal stimulus by the BoJ and Abe's government.
And furthermore, a precipitous plunge for the sterling wouldn't be bad. In fact, a plunge in its value would actually be good for the U.K., especially in this economy. For one, inflationary expectations will increase aggregate demand and get people to spend more (knowing that their pound will be worth less in the future). Moreover, a weaker sterling will give the UK's exports significant competitive advantage as they will be cheaper relative to the goods of other countries.
Hi Alltee,
I am not advocating a policy of stimulus for the long-term. I am advocating the implementation of stimulus policies when a country is in a recession. When the country gets out of a recession and sees its economy expand, then there will be more revenues generated for the government to pay off its debt more effectively. When an economy is overheated, I can be as much a deficit hawk as anyone else. Unfortunately, right now, the U.K's economy is anything but overheated. Taking more government spending out of the equation will decrease AD even more, pulling the U.K. further into a recession (as has happened).
Hi James,
Yes the deep declines from 2008-2009 for the UK looked bleak but that can be attributed to the financial crisis. However, as you can see, the United Kingdom was actually rebounding from the crisis until Osborne's austerity measures were implemented. And yes, Greece has corruption problems, but the United Kingdom does not. Interestingly enough however, both have seen their economies significantly set back by austerity measures.
Starbucks has announced it it will acquire Bay Bread for $100M and will integrate Bay Bread's La Boulange products into its stores. This appears to be a nod to the blowout success of Panera Bread.
The Chinese government, as Mr. Gee has pointed out, does have a much wider array of tools to manage its economy; it is currently in the process of trying to "pop" the bubble as gradually as it can. However, it remains to be seen whether or not this process is ultimately successful.
thinking ahead,
Thank you for the correction!
His interview with Fareed Zakaria during the WEF did include him saying this quote, but this quote is completely misconstrued since it is taken out of the broader context of his interview, which, as Venerability notes, actually says the opposite. Why doesn't this market current note that Mr. Loong also pointed out that the migration of millions to urban areas in China will be a continued source of positive growth?
Supporters of Facebook will point out that Facebook has completely revolutionized communication in the 21st century.
Critics of Facebook will wonder if this revolution is overpriced and unsustainable.
Hey Ricard,
Thanks! Yea buying during that period could have easily resulted in at least a double-bagger. Props to those who bought it in the wake of the '08 recession, rode it down to $11, and continued to stay in.
Hi johnbee,
Nice observation. I believe this is because of two main reasons. One, many Greeks still strongly believe in the principle behind the Euro and the notion of European unity, which they believe will provide many benefits (e.g. bailouts as you have noted and financial backing) in the long run. Also, most of the Greeks believe that, as portrayed by contemporary Greek media and the Greek government, going back to the drachma will result in the unfolding of an economic calamity, an alternative that they hold would be much worse and create much more instability than embarking on the current path.
Hi David,
Neodymium has always been in scarce supply and been tightly regulated by the Chinese government. However, neodymium prices have been tumbling regardless of the fact that it is a rare earth metal; from the August to December timespan, it has lost approximately 45% of its value. Your thoughts?
Hey Ricard,
I can definitely see where your train of thought comes from. By your definition of mercantilism, the idea that Greece needs to be internationally competitive certainly does imply pro-mercantilist policies. I tend to classify mercantilism on the basis of certain actions a country takes, e.g. trying to eliminate dependence on foreign suppliers, weakening foreign competitors' commercial interests, and exporting more than importing. The action of Greece reverting to the drachma, or any country changing their currency isn't mercantilism per se, but the mindset that the country needs to be "more competitive vis a vis its peers" is definitely mercantilist, at least by your definition. Thanks!
Hey Ricard,
Not necessarily pro-mercantilist; in fact pro-mercantilist mechanisms are more geared toward isolationism and self-sufficiency. I am by no means implying that Greece should turn to a policy of isolationism; instead, I simply pointed out that if it were to switch to the drachma, this would give it greater autonomous control over its currency systems. International competitiveness can come from a lot more alternatives than pro-mercantilist policies.
Hey richard,
Yea I just realized it was quite redundant. Thanks for pointing that out!
Kunst,
Thank you for pointing that out! It was actually revenues from paid services that dropped 21.6 percent.
Bikermike,
I am sorry if my wording in the article implied that Dryships was a Greek company; I meant to say that Dryships had a "considerable vested interest" in Greece, which it does.
"second and third most pathetic." What an appropriate description!
Hi cyclingscholar,
ISRG's PE might definitely reflect its potential, but I believe that PE as an analytical measure is irrelevant to the overall health and potential of the stock/company so I rarely use it.
Eh. Solar sector is still iffy.
Hi waditude,
Very keen observation! I do not have holdings in ULTA as of now because I am currently in the process of converting some of my investments into cash in anticipation for some future costs/purchases, such as college tuition and a new laptop. But you have my word- I will definitely put my money where my mouth (or in this case, article) is!
Hi herbinsky,
Yes there is absolutely a sustainable business model. All you have to do is simply look at their track record of solid financials (some of which are mentioned above). And your assertion that the customer is "getting ripped by a hype driven enticement to buy" is an opinion that simply doesn't have much backing to it.