MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Jason Zweig: Market Crashes, Stock Scandals: Lessons From The U.S. Frontier

TedTed
in Off-Topic
FYI: The government massively overinvested in transportation and land development. The banking system was inefficient and corrupt. State governments gorged on debt, then defaulted on it with aplomb. The stock market was crooked, rife with cronyism and insider trading. Stocks shot up and down like yo-yos.

China? No, that’s the U.S. in the 19th century, but it has lessons for investors looking at China and other emerging markets. Financial history shows that the return on U.S. stocks during the country’s own emerging-market period was no higher than it has been since World War II. The lesson: Emerging markets aren’t lucrative investments just because they are “emerging.” They deliver higher returns only after they have been battered, as China is being battered now.
Regards,
Ted
http://blogs.wsj.com/moneybeat/2016/01/27/market-crashes-stock-scandals-lessons-from-the-u-s-frontier/tab/print/

Comments

  • Sven
    The term "submerging market" for China is appropriate.
  • Old_JoeOld_Joe
    The banking system was inefficient and corrupt. State governments gorged on debt. The stock market was crooked, rife with cronyism and insider trading. Stocks shot up and down like yo-yos.

    China? No, that’s the U.S. in the 19th 21st century,
Sign In or Register to comment.