Archive - Sep 11, 2010 - Blog entry

South Africa is popping up on the radars of several big hedge funds as one of a handful of frontier emerging markets ready to make the move to prime time. Direct investment has been pouring into the banking sector in South Africa in recent years, possibly presaging a major long term bull market. Prices are so low and earnings leverage so great that any dire political risks you can come up with have got to already be priced in. Has Armageddon been avoided, or only just postponed? (EZW), (AFK), (GAF).

British-style military impotence, Habspurg-like default or French-echoing revolution?

On Labor Day, President Obama announced a new $50-billion infrastructure plan next year as a way of a second stimulus for job creations as well as for the faltering economic recovery. However, in light of the fact that the Democrats are losing a bunch of congressional seats, and their majority, this new plan would seem more of a last-ditch effort with little substance. So far, the Obama administration has demonstrated very little understanding of the economy, markets, and business.

Nine years ago, I was in Crete, just as I am now. It was a beautiful day, until I reached home and saw utter horror on the television. There are some things that you will never forget...

The global supply of food is going from bad to worse. The torrential rains in Pakistan have been a game changer. There is a ton of cash sitting on the sidelines because so many investors are afraid of an autumn stock market crash, and are loathe to buy the top of the greatest bond bubble in history.