International Investing

From Whiskey & Gunpowder:
China added more to global economic growth in 2007 than the U.S. That’s the first time a country other than the U.S. has contributed more to global GDP since at least the 1930s. This little history-making milestone typifies a growing list of Chinese economic achievements… and American shortcomings. “On [...]

This excerpt is from Charles Darwin’s The Journey of the Beagle, published in 1839. As you can see from this passage he recognized the role of property rights in the ascent of man above a substinance living:

Whether we look at it as a cause or a consequence, the more civilized always have the most artificial [...]

Today’s WSJ has the story. The other surprise here is the large equity decline in China and India:
…the only booming stock markets are those in the most emerging of emerging markets: Pakistan, Peru, and Chile. Those stocks markets have risen, respectively, 9.5%, 7.1%, and 6.6% this year, according to data provided to Deal Journal by [...]

From the FT:
The Morgan Stanley Capital International Asia-Pacific ex-Japan index struck a record high as both Hong Kong and Sydney climbed to new peaks and Singapore closed at its best level for two months.
The MSCI emerging market equity index also broke into uncharted territory as it recouped all the losses incurred during the credit squeeze [...]

$100 million! From the WSJ:
Iraq Fund LLC, Iraq’s first hedge fund, aims to raise as much as $100 million within 18 months for investment in companies listed on the local bourse and in state enterprises, a company official said.
The fund, launched despite the ongoing violent conflict in the country, primarily targets undervalued, Iraq Stock Exchange-listed [...]

FT reports:
Worries about US credit-market losses spreading to the Asia Pacific region flavoured trading Tuesday. Shares generally fell or rose only weakly, with Bangkok, Jakarta, Sydney and Seoul leading the drop.
…
On currency markets, the US dollar hit a two-month high against the South Korean won as investors worried about credit and foreigners continued to sell [...]

The furious economic growth of the BRIC’s (Brazil, Russia, Indian, China) makes increased world wide energy demand almost inevitable. But will the most growth come in coal, oil, or something more green? The Agora Financial newletter, Whisky & Gunpower suggests investing in molybdenum to gain exposure to all energy sectors. It’s used almost everywhere:

You can [...]

Move over, Shanghai?
Bloomberg has the goods on a surprise star of 2007’s second quarter: Slovenian equities.
The Slovene Stock Exchange Index, known as the SBI20, was the best-performing equity benchmark in the world last quarter, jumping 39 percent in dollar terms, according to data compiled by Bloomberg. It has more than quadrupled since the end of [...]

Trading guru Dennis Gartman brings up the issue in his newletter:
The simple truth is that China reduced its holdings of US treasury securities more in April than it has at any time in at least seven years according to the Shanghai Securities News of earlier this week. We tend to believe that, for this is [...]

In keeping with the Chinese state’s ancient tradition of publishing statistics that do not pass the laugh test, Chinese authorities insist that food prices jumped 8.3 percent from a year earlier, because meat prices jumped 27 percent.
Sudden burps in Chinese statistical trends are commonplace; the Chinese state usually keeps a lid on all problems until [...]