global perspective

Chinese Overcapacity is Everyone's Problem

The problem with economics is that economic theories work for a while until they stop working. Unlike the natural sciences which are dependent on the laws of nature, economics is a social science and is dependent on the behavior of millions of individuals. The problem with human beings is that they are prone to mass hallucinations and group think. More...

Where Has All The Risk Capital Gone?

What does RISK mean? It means the potential for loss. Therefore an investment that is more risky than another is considered to have a higher potential for loss than the other.

However, in the case of financial markets a new dimension is added to risk. The dimension is that of perception. There can be and almost always is a difference between the perceived risk of an investment and its intrinsic risk. In the case of financial markets, risk has almost entirely come to mean the perceived risk of an investment rather than its intrinsic risk. More...

Frontier Market Investing

I was recently in Myanmar (Burma) and what I saw completely blew me away.

My family came to India from Burma in 1959 when the military under General Ne Win nationalized all foreign businesses in Burma. A part of my extended family stayed behind in Burma and endured the oppression of successive military governments over the last 50 years. I had met one of my distant uncle's in India several months ago and he had invited me to visit him in Burma to take a look at the environment and opportunities there. After much procrastinantion and reluctance, I finally planned a trip and paid him a visit a few weeks ago. More...