Expand Your Horizons

This applies to literature, culture, history, languages and ... investing. Today's FT makes a point rather simply - US-centric pundits and investors pay attention.

***Beginning of Quote***
Emerging stock markets have reached levels last seen before the collapse of Lehman Brothers in the latest sign of investor expectations of improving global growth. The FTSE All-World Emerging Index on Monday reached 433.2 in late London trade – the highest since the week before Lehman’s demise sent markets into a tailspin.

Then, the index dropped almost 48 per cent in a little over five weeks but, from an October 27 low, has now rallied 90.1 per cent. Strategists said the rally was because of a returning belief in "decoupling" – the theory by which emerging markets will in future be less dependent on the fortunes of developed markets because they will be able to rely on stronger domestic demand.
Michael Wang, emerging markets strategist at Morgan Stanley, said: “Previously, emerging markets were seen as a geared play on developed markets because of their dependence on exports. But this is different.

Asia and Latin America haven’t had the fundamental problems in the banking sector that the developed world has had, so lending and credit growth has resumed rapidly and this is helping drive growth.”

...

Manufacturing output, a particular concern for the emerging world, reached an 18-month high and new orders hit a 20-month peak."
***End of Quote***

A couple years ago I wrote sardonically about the emerging new "East Asia Co-Prosperity Zone" - a zone of self-supporting consumer driven demand in China, India, and the rest of East Asia. It's really larger than this, including all South America, too. When looking for the recovery and where future growth will be, I think it will be there.

In the money-mouth department, Krypto Fund has a quite oversized position in emerging market stocks at 6.67% allocation.

Actions

I took some profits on extra pieces of FCX and HBC yesterday. The FCX was the bit added around 55. I got a little over 64 for it, thus making up the 10 points lost on the other half when I made the Obama dump in early July. I also sold about 1/3 of HBC in Fido Fund - that position had gotten too large. HBC reported surprisingly strong earnings and I took advantage of the rip. My average gain was 75% on that stock.

Word of the Day

"Espantoon" - noun [$???] a Mencken word not in any dictionaries
Espantoon was the term used in Baltimore in early 1900s for a policeman's stick - a nightstick with a long leather strap for twirling. The word perhaps derives from Spanish, "espanto", a noun for fright or threat.
Sentence: Timmy yesterday used the verbal espantoon to try to get the financial regulatory heads to back financial reform and to stop their turf battles.

Multi-lingual Department

I overslept, so nothing today here.