Rakesh Saxena

Emerging Markets: Millions Returning to the Natural Economy

Nothing wrong with returning to our rural roots, omooc. At least we would not have to worry about stimulus packages and TARP funds. Many thanks - Rakesh


On Feb 13 10:24 PM omooc wrote:

> What's wrong with returing to your rural roots? In China, a few years
> in the city allowed one to save some money, thereby allowing one
> to build a house in the rural area, and to return there from time
> to time. In the Chinese-language paper I read, I saw a photo, a couple
> of days ago, on the front page, showing the backside of a bicyclist,
> returning home, with a big washing machine (by Haier) at the back.
> The general attitude seems to be positive -- a few years in the city
> is nice, but returning to the rural home with your spouse and family
> is nicer. With simple tastes and no debt, plowing the field is gainful
> employment.

Emerging Markets: Millions Returning to the Natural Economy

Dear Proximo: FYI, my main business in a bull market has been merger-arbitrage type transactions, which provide the window to go long one one stock and short another. I am not a value investor (long term) because, since the early 1908s I have not trusted the accounting and disclosure in the marketplace. So I have focused on trading "misalignments", a bit akin to spread (pair) trading. Many thanks - Rakesh


On Feb 13 10:10 PM PROXIMO wrote:

> Rakesh---You have indicated that your preferred investment style
> is short sales. Just curious, if conditions improved, say, several
> years out and a bull market in stocks likely, would you still be
> most comfortable focusing on opportunities in the short sector? Or
> would you look to go long? Just curious---if you happen to read this
> comment. Thanks, PROX.

Emerging Markets: Millions Returning to the Natural Economy

Dear Kay: You are correct insofar as certain rural areas in these markets are dominated by foreign remittances, criminal gangs and aid packages. In that sense, the term "natural economy" needs to be contextualized in today's reality. Many thanks for your comment. - Rakesh


On Feb 12 02:02 PM Kay Moseley wrote:

> "Regeneration of the natural economy"? Would that it were true!
>
>
> Unfortunately, more and more of the countryside in the "emerging
> markets" now resemble rural slums -- dependent on purchased food
> and other inputs and thus on either some sort of rural wage work
> (including massive narcotics markets, here and there), remittances
> from relatives with urban or overseas jobs, or on "humanitarian assistance"
> (surplus food + foreign NGOs). This is why food prices, poverty and
> protests figure (as in the last paragraph of this interesting article).