July 22, 2019

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Shares: Should You Panic?

stock prices fall
Stock-markets are falling. Does this mean that the nine-year bull market has come to an end, that shares are finally adjusting to some uncomfortable realities, as their extreme valuations have long suggested they would? [Read more…]

The shares: base-building for lift-off?

The shares: base-building for lift-off?

Vietnam rising

Vietnam rising

If you are interesting in making a speculative bet on Vietnam, the easiest way to do so is through one of the ETFs such as db x-trackers FTSE Vietnam (listed in the UK, Germany and Singapore) or Market Vectors Vietnam (in the US).

The longest-established foreign-managed investment trusts are those run by Dragon Capital and listed in Dublin. Other Vietnam collective funds include the Vietnam Opportunity and Holdings trusts listed in London, Vinaland, the SGAM Vietnam Opportunities Fund (Ireland) and JF Vietnam Opportunities (Hong Kong).

London analyst David Fuller comments that Vietnam’s weak currency will improve its international competitiveness, its stock market valuations in terms of historic price earnings are the lowest in Asia, and “the long history of frontier markets indicates a tendency to range indefinitely, almost falling off investors’ radar – before advancing several hundred per cent.”

He says that this year “I am likely to increase my small personal exposure to Vietnam.”

•    Vietnam Rising Dragon, by Bill Hayton. Pub. By Yale University Press, ISBN 978-0-300-15203-6.

CopyRight – OnTarget January 2011 by Martin Spring

The above article is the final article in the series which started with

Vietnam: a Speculative Bet on the Future

and was followed by

The problem of bloated giants

The Case for Optimism

The outlook for equity markets is good, the well-known analyst and commentator David Fuller of Fullermoney newsletter told the Annual Contrary Opinion Forum in the US last month.

Positive factors include accommodative money policies with low interest rates, low inflation, what David likes to call the “progressing” (developing) economies are healthy, the West’s recovery is only 15 months old, household savings are rising, equity valuations are reasonable and corporate balance sheets are mostly strong. [Read more…]

The Case for Investing in China Now

Since equity markets bottomed in July, US stocks have risen about 17 per cent – but China-listed shares have done much better, climbing about 24 per cent. Yet that has happened despite very different financial environments.

In the US the American central bank (“the Fed”) is flooding its system with money, deliberately aiming to promote a stock-market boom whose “wealth effect” it hopes will stimulate consumer demand, strengthen economic recovery and create jobs. [Read more…]