Salil Deshpande

4 Comments

    • Hot China Stocks: A Bubble to Avoid [view article]
      Well, Chinese stocks may be up much, but there is no bubble so far. To reach a real bubble, PE needs to be over 100 or even 1,000 like Japanese stocks have done about 20 years ago, and everything must be rosy.

      I remembered that Japan stock market average P/E is 1,000 around early 1990s, and at the same time Japanese were still arguing there was no bubble as Japanese real estate was expensive enough to justify the high P/E ratio. I was in Japan during the time, all the Japanese I encountered told me so. That is the time for real bubble.
      Because a stock went up 120% in a year did not justify a bubble. With so many negative comments coming out, a real bubble is far away.

      During the real bubble time, US high tech stock has P/S over 100 and without any meaningful P/E. That is the real bubble time.
      Oct 17 06:04 PM
    • Why Would Anyone Buy VMware? [view article]
      "Microsoft (MSFT) has a very strong product in the same technology area ... "

      Wow, talk about not knowing what YOU are talking about!!! Microsoft has a very strong product in the same technology area? What is that exactly? I'm a MS fan but you are completely wrong here.
      Oct 09 03:04 PM
    • Options on ETFs (mentions IWM) [view article]
      Ernie,

      Those country ETFs are fine - I don't own those - but it's too bad that most country ETFs only hold large caps: see an interesting article on this site, The Myth of International Diversification which says that due to globalization international large caps are getting more correlated to each other than ever before.

      Salil
      Sep 23 03:16 PM
    • Options on ETFs (mentions IWM) [view article]
      Hi Ernie,

      Check out the following ETFs: JPZ, MCN, FFA, EOI.

      They aren't "solely" dealing in options in that most of them go long broad equity indices, and sell (covered) calls on them, and also buy out of the money puts for downside protection.

      They've worked well in portfolios I manage.

      Salil
      Sep 22 02:48 AM
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