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 : Jim Rogers -- Investment Biker -- Ignore unavailable to you. Want to Upgrade?

To: Tom who wrote (144)	3/30/1999 11:50:00 AM
From: Thomas M.	Read Replies (1) \| Respond to of 213

During the last few years, he has done a couple of great interviews in Barron's. His claim to fame is that he called the Asian miracle a big lie years before the crash. Excerpted from a March 15 Barrons article: <<< Some equity strategists such as Albert Edwards with Dresdner Kleinwort Benson in London believe inflation will become a more pronounced factor in Europe. He urges investors to take a more aggressive posture, predicated on a belief that Asian-like "bubbles" are developing in countries like Ireland, Spain, Portugal, Holland and Finland, arguing that investors should take an emerging-markets investment strategy to reap the benefits of inflation. "When the U.S. market fell in the third quarter last year, all the European markets fell about 35%-40%, but the ones which rebounded were those with the earnings momentum, such as Italy, Spain and Ireland," says Edwards. "Others, like Germany, hardly recovered at all. That was a good time to switch into those markets, and we think U.S. market will have another wobble this year, which will offer yet another opportunity for a shift." Last year, markets outside the core of Europe -- Spain, Portugal, Ireland, Italy and Finland -- rose by between 30%, in Portugal, and 95%, in Finland, in U.S. dollar terms as measured by Dow Jones Global indexes. "We liken Euro 'bubbles' to a balloon," Edward says. "Bursting is only one option. As wage inflation increases in the Eurobubble countries, excess growth will ultimately be competed away within the single European market. The less open the bubble economy is, the longer the process will take. We believe this offers the investors an unusual and, in all likelihood, a lengthy period of superior earnings evolution." The adoption of a single interest rate in Euro-zone countries will result in a major overheating in many peripheral countries, Edwards argues. "From an investment perspective, a major bubbling up of nominal economic growth will look extremely attractive against a subdued European core and minimal top-line growth in the U.S., Japan and the U.K.," he adds. "Riding the growth bubble with almost zero currency risk will become an investment nirvana. "The process is just getting started and will be ongoing for some time." >>>