Richard Kang1

ETFs, Commodities and Dubai

DW: Mutual funds just aren't a part of what I do but I'm sure there are also CEFs and other instruments that have adequate coverage of the region with a variety of performance histories. I'm not sure if I see the dress on ETFs to be as sexy and posh as you see them ... I've always thought of them as boring power tools for building a sturdy deck. Mutual funds are the ones with managers saying stuff like "I buy good stocks and sell shit stocks". Yeah, that's posh. But if you think the region is relatively inefficient with relatively few market participants and with a wider array of opportunities, why not go full blown hedge fund?
Still, DW, I tend to lean a bit more towards your comments over JL's over Dubai. The region is a hodgepodge of basket cases with a few success stories hidden within. The diversification of Dubai beyond oil seems to be well into place and should lead down a path similar to Hong Kong and Singapore. My guess is that by the time oil tanks in a serious, long-term manner, Dubai and its masterplan will be fine. The comments above regarding the treatment of labor are certainly disconcerting and the images I saw won't be soon forgotten.