Asset bubbles are inflating in all emerging markets.
The MSCI emerging markets index is up 71% in dollars this year.
The biggest gainers being Brazil (140%), Russia (127%), Indonesia (105%), China (102%) and Turkey (90%). India 83%.
But as long as a global tsunami of dollars keeps flooding into emerging markets, asset prices will keep rising.
In other words, investors rushing into real estate and stock markets are acting rationally, not foolishly. You may think they are myopic morons who have learned nothing from the bursting of the last bubble.
In fact they fully understand that booms and busts are intrinsic parts of a market system, not aberrations that can be avoided. The secret of staying ahead is to ride the bubbles when they are inflating and get off before they burst.
The MSCI emerging markets index is up 71% in dollars this year.
The biggest gainers being Brazil (140%), Russia (127%), Indonesia (105%), China (102%) and Turkey (90%). India 83%.
But as long as a global tsunami of dollars keeps flooding into emerging markets, asset prices will keep rising.
In other words, investors rushing into real estate and stock markets are acting rationally, not foolishly. You may think they are myopic morons who have learned nothing from the bursting of the last bubble.
In fact they fully understand that booms and busts are intrinsic parts of a market system, not aberrations that can be avoided. The secret of staying ahead is to ride the bubbles when they are inflating and get off before they burst.
