LR European

Defensive in Short Term; Intrigued About Japan

Not sure why the sarcastic comment on Saut's statement about China pulling the world out of recession.

I am sure you too must have noticed that China has been emerging as a significant sized economy. Sure, it is premature to talk about it being the largest economy in the world (though it will be soon enough), but it is certainly already large enough and integrated enough in the global system (trade, money flows) to be able to pull (or push for matter) the global economy.

Jeffrey Saut's article is a good read and well argued on uncontroversial facts. Thank you.

On Jul 14 05:40 AM whidbey wrote:

> One would never know you sell stock. China pull the world out of
> recession? Were these comments written late at night? Your advice
> is to be taken very lightly and disregarded at every turn. But you
> may be right about this week. Bradley and Phi Mate turn dates are
> due and they may be up, for a while.

Asia Will Lead the Developed Markets Over the Next Few Years

"many Asian markets remain cheap. For example, the Singapore Straits Times Index and the Hong Kong Hang Seng Index are at levels close to their levels in the early 1990’s, before the Asian financial crisis."

Were Asian markets cheap before the crisis? (Were US housing stocks cheap before the subprime crisis?)

A shame you don't give numbers for these levels. Valuations at pre crisis levels suggests either fair or expensive, not cheap. Actually, my assumption before reading the article was that Asia was cheap - you make me less sure.

As for the rest of the article.... excellent points, clearly conveyed. Thank you.