anvor

On Country Selection

What the heck did Roger meant by this?: "One thing to remember here is that in the last few years foreign markets have dramatically outperformed US markets which creates the opportunity for confusing genius with a bull market."

Beware of Crumbling BRICs

Just read, belatedly, that Buffett recently said that the US is in "stagflation" in which "stag-" will deepen, while "-flation" will continue to soar. Betting against Buffett is not my cup of milk, so let me think aloud: With some BRICs "damaged", we still have the other two. So, long Russia and Brazil? (and "so long" CHina and India?:)

With Russia in particular: since russian ruble will continue to appreciate against the dollar, it makes sense converting dollar-denominated instruments into ruble-denominated ones and sleep quite happily on the Russian index (even their largest, fully state-insured bank offers 9% on ruble 3-month deposit.) Inflation or not, I'll be up in the end, for higher ruble securities eventually converting into diminishing dollar should make additional sense. With both Putin and his puppet gearing to combat inflation, russian growth may not be above 10% as it should be with this price of oil (which ain't coming down, folks), but even 8% GDP will do wonders for my Russian index.

Tell me if I am wrong. Ple-ease:)