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Since war is out of the question, one emerging markets pro sees the Korean kerfuffle as a buying...

  • Tuesday, November 23, 2010, 4:54 PM ET
    Since war is out of the question, one emerging markets pro sees the Korean kerfuffle as a buying opportunity, "both short-term for a 20%-plus flip and 200% for long-term investment." Since nearly all Korean firms don't trade or barely trade in the U.S., South Korean closed-end funds such as Korea Fund (KF) offer opportunities for U.S. investors.
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This news story has 5 comments:

  • KF looks very illiquid... i'd stay away from it

    better use another emerging Asian ETF (such as Malaysia or Taiwan) as a proxy that fell purely due to the attack and nothing local.
    23 Nov 2010, 05:09 PM Reply Like
  • With KF selling at an 8.8% discount to NAV it may be a good time buy.
    23 Nov 2010, 05:20 PM Reply Like
  • I'll take a swing at Kimchi futures.
    23 Nov 2010, 05:24 PM Reply Like
  • "War or no war" is not a sufficiently predictable risk.

    N. Korea has just anointed a new boy leader, mentored by the top Korean general, and daddy's losing it fast. All kinds of wars start by accident. This one appears intentional, so far. Not a good sign.

    One might be better off investing in a 2nd or 3rd derivatives -- petroleum distillates, food, other political tension / uncertainty plays.

    This may not end quickly; North Korea is not exactly a smooth diplomatic operator, and they're shooting high explosive rounds at a nation which also contains lots of short-tempered Koreans.
    23 Nov 2010, 05:33 PM Reply Like
  • War is certainly not out of the question. China is waging the economic war and gave the ok to their little puppet to lob a few shells here and there to strengthen the dollar.
    23 Nov 2010, 06:59 PM Reply Like
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