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MENA - Dubai World - oops


Thanks Dr MoJo!  You've been rambling on about emerging market investment for the past 8 articles and Wednesday evening - when US markets were shut for Thanksgiving and Middle East markets for Eid - Dubai World raises its hand, "Um, guys, we think we may have a little bit of a liquidity problem.  Can we delay debt service for 6 months? Sorry."  Music to a banker's ears.


So let's step back and take stock (no pun).  Who is the biggest underwriter of DW stock?  Royal Bank of Scotland - $2.3BN.  I'll bet the UK government - virtual owner of RBS - are tickled pink.  Who else?  HSBC has $17BN exposed in the UAE.  Standard Chartered looks set to lose $117MM.  

Wouldn't you want to be a fly on the wall at 10 Downing Street?  Can you just imagine if DW actually succeeded in its bid for the Port Authority of NY a few years ago?  Wow - would that not be fun.

So what now?  Well the MSCI emerging market fund was down yesterday - yes by a whole 1 point.  China powers through as does the rest of non-Japan Asia.  Africa continues its growth as does LATAM.  

So should all emerging markets pay a price because some folks made bad real estate investments?  Of course not.  Emerging markets are still a good bet and companies are gearing up to move in quickly.

Yes the Dow dropped today and likely more on Monday.  So - do I hear bargain time?  CT fund managers should pay attention.  This is a market to go for.