Hi Maurice, <<just wrote a long post … post has ceased to exist>>
Yup, I think it may have gone to post heaven.
<<of course my post was great; fun, brilliantly percipient, well-written, persuasive and unimpressed by Nokia's Aztec approach to communications>>
No doubt, and that is why I like blowing smoke in your face and then pull on your whiskers:0)
<<"Things are never so bad that they can't get worse">>
Spot on, and now you are truly doing your portfolio a favor. How many times did the Argentineans buy the dip? Apparently quite a few times, and their stock market is actually one of the better performing ones this year. Something about the cash had no place to go, and hyperinflation benefits companies selling things. I made a mental note of the phenomenon since the Argentine disease will be hitting some larger soon to be submerging economies. I also note that Japanese shares have been firming even in face of rising currency. Nothing seems to work as it should.
<<those who think shares should carry a risk premium should reflect on those holding Argentina's currency rather than shares because the shares didn't have enough risk premium>>
At this particular moment, on relative basis, the Argentine currency did not carry enough risk premium compared to its share market. Just a reminder, in case you missed the obvious, neither the currency nor the shares carried enough risk premium relative to, yes, yes, yes, Aztec gold.
Is it time for you to position your portfolio for a fractal scale-up of Argentina to the overall world economy?
Chugs, Jay |
