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  • Success in 2010 Requires Investing in Other Countries [View article]
    You already have a lot of hedge funds shorting China. If any country is experiencing a bubble now, it is China.

    And one must ask oneself, should that many eggs be in a repressive country that could explode in political unrest?

    The Communist party today has no ideology other than keeping themselves in power. If the economy falters at any point, the lack of political accountability could lead to unrest.


    On Dec 24 01:35 PM Econ Grapher wrote:

    > You raise some good points here. Emerging markets are increasingly
    > becoming the growth engines of the global economy. The long term
    > story for the likes of China is definitely compelling, and will become
    > very interesting as moves are made to rebalance the economy over
    > time (interesting in terms of longer term sustainability). But even
    > the more developed countries, like Australia in particular, are on
    > a far better footing than the US for example. Australia is enjoying
    > relatively strong earnings performance, stock market performance,
    > and has been benefiting quite well from trade with China, they've
    > even started to add jobs (and not just part-time jobs). Go country
    > selection!
    Dec 25 08:47 am |Rating: +3 -2 |Link to Comment
  • Seeking High-Alpha, Low-Beta Countries (Part I) [View article]
    So to diversify my portfolio, I should add the low beta countries such as Egypt, Malaysia, Philippines, Japan, Morocco? The lower the beta, the more the diversification.

    My portfolio is leveraged. So diversification is at the center of my concerns.

    Is that correct?
    Dec 14 14:48 pm |Rating: 0 0 |Link to Comment
  • Seeking High-Alpha, Low-Beta Countries (Part I) [View article]
    Why such a short data period? Are the betas stable over longer periods?

    Did you check the error terms to see if they were white noise?

    Hint: I was a very good time series analyst in a previous life.
    Dec 14 08:45 am |Rating: +1 0 |Link to Comment
  • Capitalism, Socialism and 10-Year Returns of Country ETFs [View article]
    No, they have more capacity for growth because their costs are lower!


    On Sep 07 10:14 AM Alphameister wrote:

    > Emerging markets inherently have much greater room for growth because
    > they don't require extensive innovation to achieve such growth; they
    > need only an increased respect for the virtues of capitalism. High
    > corporate tax rates are paid by all of us and cannot be ignored when
    > comparing tax burdens country by country. When you compare investment
    > returns 5 to 10 years from now, my bet is that China will again surpass
    > the U.S. and other developed economies by a very wide margin.
    Sep 10 12:06 pm |Rating: 0 -2 |Link to Comment
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