Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Cogito Ergo Sum who wrote (68245)	11/17/2010 8:51:58 AM
From: TobagoJack	1 Recommendation Read Replies (1) \| Respond to of 218074

Ajay Kapur : Ten Provocative Observations (and more on plutocrats?) The Investigator : Ten Provocative Observations The anomalies out there 1. Emerging markets are severely underinvested in developed market stocks, but overinvested in their bonds. Developed markets are at appropriately hedged exposures to emerging market stocks. 2. QE2 exacerbates income/wealth inequality across the world, pumps the wealth of plutonomists, the asset-rich and old, but taxes the urban poor, asset-short and young. 3. The Demi-Ashton Ratio (the ratios of those in their 40s to 20s) - the key (only?) reason to buy emerging/Asian markets for the next two decades. Not "superior" growth, return on capital or other presentation-material propaganda. 4. With global excess returns on capital at record levels, is a capex boom coming? 5. Corporate Asia is at record lows in leverage. Going forward, De-equitization as opposed to more de-leveraging? 6. Emerging/Asian stock markets a stock-picker's paradise, the US a macro-market with only opportunistic stock-picking potential. Globally, occasional stock-picking regimes favor junk and those with individual stock stories. 7. Japanese stock valuations are close to levels discounting the Lehman crisis. A successful Bernanke targeting of US inflation-expectations could unlock value in Japan. 8. India's consumption ratio is falling, despite the mother of all bull markets in gold and property. Why are Indian consumer stock valuations at record highs? 9. Agriculture stocks are great long-term stories. However, sentiment on agriculture commodities is too high. Sell these stocks. 10. China is "over-monetized" and "over-banked" compared with its per capita GDP. Its bank market capitalization is too large versus its economy. Low bank multiplies reflect this gargantuan starting point, and are probable value traps.