Monday, March 14, 2011
We've demonstrated repeatedly this cavalier attitude of Investors and people in finance this weekend concerning Japan.
So here's another, this time on the broader global economy---
How to Play the Emerging Markets (Wall St. Journal) -- "Despite the gloomy headlines, opportunities are cropping up in unexpected places. Danger signals are flashing all over the emerging markets. Growth is slowing. Inflation is heating up. And political instability is upending governments in the Middle East and North Africa and could spread further. In the past, a trifecta like this would prompt investors to dump all emerging-market holdings and hide out in safer countries until conditions improve. But those who bail now could miss out on big opportunities."
Ok, let's break this down into the nitty gritty..
~ "Despite the gloomy headlines" -- Gloomy is defined as dismal or depressing. No optimistic investor wants to read 'Gloomy' information. It may spoil their day and affect their ability to make money, But alas! .. 'opportunities are cropping up'.. Goodie Gumdrops. What are these lovely opportunities the writer is talking about? Let's see...
~*~ 'Danger signals' in emerging markets: Um.. ok. That means ability of emerging markets to stabilize their economies and make timely payments to the banks and IMF of their debts, which brings about harsher austerity and destabilization. So, I.. guess.. that's a plus?? Wonder what the 'trifecta' is?
1) "Growth is slowing": Um, how is that good? Always thought when economies slow it means people lose their jobs and few if no new jobs created to hire those out of work. Also thought it meant people struggling to make ends meet, pay bills, etc.. But what do I know.. continuing..
2) "Inflation is heating up": Um.. hm.. Inflation means prices rise, yes? It means a person needs more money today to buy a product or service than what that person would have needed yesterday. Means eating at savings and overall family budgets when everything costs more than it did before. So, thats.. um.. good?
3) "Political instability is upending governments..": Ah, that means Egypt.. and Libya.. and Tunisia and Algeria, Yemen, Bahrain, etc.. Doesn't that also mean government crackdowns and loss of life? Hmm..yes.. and quite exciting that it "could spread further", like into Europe and Asia. Ah.. yes.. quite a 'trifecta'
~ But don't be scared little emasculated, cowardly investors with your 'tail' between your legs... No No, because "Those who bail now Could miss out on big opportunities!" And by 'could', the writer means do not blame himself or WSJ or hold them legally responsible if/when you do not make big money on such 'opportunities'.
Tomorrow's WSJ followup -- "Human Suffering- How To Play it"
Posted by Susquehanna at Monday, March 14, 2011