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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (51764)	6/25/2013 2:03:18 AM
From: Spekulatius	Respond to of 78744

Re CIB - I sort of agree with you on CIB and bailed today at a small loss. These emerging market banks are often vulnerable to currency declines of their native currencies. For one, the share prices will naturally decline when the native currency declines, while manufacturing or mining companies have offsets via lower production costs but even more troublesome, many have liabilities in US$, while assets are more tilted towards their native currency. This asset -liability mismatch can be extremely painful, when the financial markets are stressed and liquidity is moving away from fringes. I think CIB is less vulnerable than Brazilian banks but still. Bought back some CSX today at 22.6$ instead, which I know well and have sold at higher prices.