Mark, good data, but it is the past and I like to buy when the recent past makes valuations low. I agree that on a pe basis, the resource stocks are expensive, as are American stocks such as Burlington Resources and Newmont Mining. IAF may have few direct investments in resources, though I think Broken Hill is still their lead stock, but with a resource economy, other investments are tied to their success. To use another of my favorite areas, South Africa, when you buy a department store stock in South Africa, you are placing a bet on gold, platinum and diamonds.
I like direct investments, though many cannot go that route. And IAF sells at a discount while you cannot buy a direct investment that way. I think a bit of both is a more balanced way to play.
An interest rate cut will help FAX first, but probably help IAF more. Just as when the Fed cuts, bonds usually do better first and then stocks do MUCH better.
Singapore is one I mentioned in my closed end report. It is a regular favorite of mine. Not my favorite place to visit, as they are bit more puritanical than I am and I don't like being caned <G>, but they have their act together economically. The big danger there is that this is a dinky, rich island surrounded by a poorer, tougher, larger country with a different dominant religion. |
