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.