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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Chas. who wrote (67100)	10/12/2010 1:55:36 AM
From: elmatador	Respond to of 218107

Many want BRL at 2 per dollar to buy. Actually, me and Klaser also want it.

To: Chas. who wrote (67100)	10/12/2010 11:15:44 AM
From: elmatador	Respond to of 218107

Ode to the Emerging Economies Although this flood of new money won't find a home domestically, it will find places to settle down in many of the emerging markets. Emerging markets, by and large, have lots of cheap labor, but lack capital. Because they have only modest domestic savings and are somewhat unstable, interest rates are generally higher than they are in counterpart Western countries. In Brazil, for example, the short-term Selic interest rate is 10.75%, compared to an inflation rate of only about 5%. That means financing expansion is expensive, so growth is slowed. However if the world's central banks increase the global money supply, the extra money heads for the markets where the best profit opportunities exist. Some of this money will inevitably find its way into domestic junk bonds and leveraged buyouts (LBOs), but most of it quite rationally heads for the higher returns available in the emerging markets. That's very good news for emerging-market stock markets - at least in the short run, before inflation becomes a real problem - and for two very good reasons. First, the extra money increases growth rates and incomes, benefiting the earnings of companies selling to domestic consumers. Second, that liquidity infusion pushes up local stock markets, raising Price/Earnings (P/E) ratios. With both earnings and P/E ratios rising, the profit potential is enormous.

To: Chas. who wrote (67100)	10/12/2010 9:21:59 PM
From: average joe	Read Replies (2) \| Respond to of 218107

Don't underestimate the socio-economic power wielded by the material girls of Ipanema.

To: Chas. who wrote (67100)	10/13/2010 9:02:32 PM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 218107

Scroll to the bottom and you can see how well Brazil should do - which is about how well they are doing. lagriffedulion.f2s.com Some countries do better than they should, such as Ireland, done on borrow and hope but that has all gone bad. Some do worse than they should do such as South Korea which has rapidly been improving, and New Zealand which has been declining for half a century as welfarism, statism, kleptocracy, suffocatocracy, crime and bludgerism have taken over. Brazilians and their Great Green Goddess are obsessed with "presalt" oil, thinking they have hit the found-wealth jackpot. Venezuela has mountains of oil [presalt or not] and they are still poor because they pour the money down the drain and run Chavez rules, confiscating things from people. Mqurice