In the Jan 28 issue of the WSJ, Jason Zweig points out that in the 19th century and early 20th century, the US returns was 6.5 pct after inflation. The same as it is today. He thereby makes a compelling argument that don’t get sucked in by the GROWTH STORIES of Emerging Markets. In fact, when there was complacency and everyone likes emerging markets, that period is folded by low returns. While when there is fear, returns going forward have been attractive.
Mr. Zweig ends with the following - with Shanghai Composite down 23 pct in 2016 and 55 pct from its 2007 record, thus may be a good time to buy. He adds - when investors lose all hope in China, and call it SUBMERGING, time to go in.
We would simpky like to point out to our readers that last year the Shanghai Composite had positive returns. We would also opine that not much blood has been detected on the Streets of Shanghai.
And we end with our usual note - you, dear readers, already knew that.
Thank you!