xsuddensam

The Perfect Storm: Semi-Annual Economic Review

A well written, no nonsense and informative article.


Regarding investing in emerging markets, the author says:

"....That said, not all emerging markets are created equal. Many emerging markets are cheap because they are genuinely at risk. Here the things to look for are poor current account balances, trade deficits, government budget deficits and a track record of over spending, and worst of all high levels of external debt with a low level of fx reserve protection. Sounds familiar? Yes, that was Asia a decade ago. "

Sounds familar? Yes, that is the United States today. So why would anyone want to invest here?

Stocks: Is the Tide Turning?

As a consumer, I haven't bought anything in the past two months except groceries, gasoline, and of course, wine and beer to ameliorate the distress.

I was fortunate to sell stocks early. I'm certainly not going back in now. As someone said regarding profits, "You can have the first and last 20%, I'll settle for the middle 60%"