Monday, November 7, 2011


Same facts, different interpretation

In Santangel's Review, Wilbur Ross says that Japan is a play on emerging markets, as it sells 72% of their exports there. In my previous post, I mentioned that Hugh Hendry thought that China was in a bubble, was too dangerous to short directly, and hence looked towards Japan as a shorting opportunity. It's the Japanese reliance on China that made it that way.

Ross points out that the Japanese market trades at one times book value - which looks pretty cheap.

Jim Chanos has recently expressed the view that he thinks that the property in China has started, and that the country "is on a bigger and faster treadmill to hell".

It's never a one-horse race, is it?

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