Salacious

In Asia, 2010 Likely to Be as Bad as 1998

Growth is not the same thing as stock market performance.
While the GDP looks certain to keep humming along, if this dollar carry trade is interrupted, it might pull out the support from some speculative markets in Asia, such as in the stock markets and real estate.

I would agree that it's best to be cautious buying any more emerging markets equities for the time being, but be ready to swoop in if they fall due to interest rate hikes here in the US.


On Dec 20 10:59 AM zenstar666 wrote:

> Very surprising article. Everything I have read seems to support
> the notion that Asia, particularly China and the other BRIC countries,
> will experience significant growth, compared to the U.S. and developed
> European countries, through 2010 and beyond. Will everybody short
> China in 2010 after this dismal prognosis? Hard to believe they will,
> but who knows.

World’s Best Online Banks

I still have my HSBC account I opened probably 3 years ago. It was great at the time for accumulating capital and earning some decent interest before I began investing. Now I just keep a small sum in there as an emergency fund. They even sent me an ATM card to go along with it, which came in handy when travelling.

Top Trades for 2010 - Goldman Sachs

I have to remain skeptical of the aims of GS of releasing such information free to the public. What accompanies most articles such as this is a disclosure of positions held, but good luck expecting to see that from such a massive trading house.
Reminds me of Cramer's predictions on hot stocks, which seem to be best utilized by selling whatever he says to buy.

Personally though, I agree with the introduction, and its bullish sentiment for the coming year.

I don't fully understand this point though:

3. The growing gap between emerging economies and developed nations.

Wouldn't the economies be slowly converging as the emerging markets mature?

China's Stimulus: Wasteful or Wise?

Thanks for posting that video. I like how that analyst talks about "Who wants to be the mayor who doesn't achieve that 8% growth?" It does seem to me that such pressure to succeed can easily lead to squandered outlays on ridiculous, all but useless projects.

The Demise of Japan as an Economic Power?

I am curious about the Postal savings accounts in which the Japanese place their money. Are the interest rates at all attractive, or is stability the one and only goal? Also, does anyone know how much exposure Japanese investors have to the rest of the world? It seems such a waste to have money locked away when it could be put to work.

U.S. Economic Growth Deconstructed

Enjoyed your metaphor you introduced here, it does put things into a frightening clarity. Just another reason I'm glad my money is invested all over the place, not just domestically.

Getting Comfortable with Chinese Investments

While I can understand your hesitance to commit funds to specific Chinese stocks before having visited the country, if these growth rates of 7-8% are to be believed, it seems hard to resist, for me anyways, going ahead and taking a position.

I encourage visiting as many places as you can, but if I waited to invest until after I'd visited a country, my options would be limited. Even though I've traveled widely in Europe, I can't honestly say I now feel more qualified to pick winning stocks. I don't even try that here in the US.

I am ramping up my own position in an emerging markets mutual fund, trying to make my purchases when the prices are low. There is much less risk than that found in single stocks, all I do is select what fund I want and wait for the ideal time to buy.

The Return of Japan's Zombie Finance

For me, the take-away from this is simple: Don't invest in Japan!

Markets Look Forward, Not Backward

I appreciate your overall calm and rational approach to investing. Sorry you got stuck listening to CNBC!

Absurd Inverse and Leveraged ETF Product Whining (Updated)

I myself own holdings in some Vanguard mutual funds, but you can only be entertained watching their returns for so long. To take some risks, and have some fun, it's nice to be able to use a leveraged ETF to play the market.