"History is a wonderful thing, if only it was true"

Tuesday, December 14, 2010

More on Asia

Growth - yes
Risk - yes, and has most of the prospective growth already been priced in?

The End of the Asian Bull Market

Over the next five or even ten years, investors relying on emerging economies will not be as fortunate, however, according to Louis-Vincent Gave, CEO of the Hong Kong-based research and investment management firm GaveKal.

Asian economies will grow faster than those in the developed world, Gave predicted, but that won’t be enough to compensate for high current valuations and excessive liquidity. Indeed, Asian debt and US equities offer far better investment opportunities, he said.

“The situation in Asia is 180 degrees from where it was five or six years ago,” Gave lamented, referring to the paucity of attractively priced stocks. He has lived in Asia for most of the last 20 years while investing in the Asian markets,

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