How can China stock capitalization be as high as last August ? China stocks crashed. Is that massive new issuance ? I would have heard about it ... but that would be bearish and in line with what I expect for emerging markets. Emerging Markets Gain Record Share of World Equity By Michael Patterson and Laura Cochrane July 3 (Bloomberg) -- Developing countriesâ share of worldwide equity value climbed to a record as the fastest- growing economies lured stock investors amid the first global recession since World War II. The 22 nations classified as âemergingâ by index provider MSCI Inc. comprise 24 percent of world market capitalization, up from 18 percent at the start of this year, the highest proportion since Bloomberg began compiling the data in 2003. China shares topped $3 trillion yesterday for the first time since August, from $1.8 trillion at the end of last year. http://www.bloomberg.com/apps/news?pid=20601087&sid=aqO3hUtyjtuw
A lot of these "emerging markets" are way overvalued and prone to huge downfalls, as things like the Asian currency crisis, which left currencies AND markets down in mega proportions in the late 90s.
on whom you would invest in. a 16 year old kid or a 60 year old guy. developed country is reeling with problems and recessions. its the emerging markets where the growth is.
Emerging markets will probably lead the world out of recession... older, bigger companies might be in parts of the world where capitalism is being used like a punching bag but the thing is, they also OWN that part of the world...
emerging markets tend to careen between high overvalued, crashing or illiquidity. It is not a 16 year old kid, but someone with bipolar disorder.
ok, we invest in the f∩¢ked up 60 year old, took our time and resource to reform him and at the end of the day see him die, fully reformed ofcourse. is this what you suggest?