I receive a weekly email Newsletter on financial matters from John Maudlin in the US. I like it because he is always looking for people with a perspective different from the crowd.
This week, in part, he discussses a book by GaveKal Reserach "Our Brave New World", in which, the premise is, "this time it is different".
www.GaveKal.com
GaveKal reserach
They discuss how it is only natural that manufacturing jobs go offshore to cheaper labour markets. And we shouldn't overly worry about this.
I picked out a couple of paragraphs as they particularly relate to property and also relate to Australia.
"In simple words, the emerging markets' newly rich will feel like investing a part of their newly created wealth in regions of the world where property rights are well protected and where there is a rule of law."
" ...... we can assume that, as a result of the constant capital flows, the countries with a well developed capital market will have an overvalued currency and a very low level of long rates. Which in turn leads to robust real estate markets and higher asset prices."
Interestingly, these comments reflect a similar view I heard from another source. That the US $ is holding up, despite concerns about trade deficts etc, as it is still seen as the safest and most stable place to have money, compared to other countries.
I Think I'll buy the book.
Has anyone else read it?
Any comments?
Garryk
This week, in part, he discussses a book by GaveKal Reserach "Our Brave New World", in which, the premise is, "this time it is different".
www.GaveKal.com
GaveKal reserach
They discuss how it is only natural that manufacturing jobs go offshore to cheaper labour markets. And we shouldn't overly worry about this.
I picked out a couple of paragraphs as they particularly relate to property and also relate to Australia.
"In simple words, the emerging markets' newly rich will feel like investing a part of their newly created wealth in regions of the world where property rights are well protected and where there is a rule of law."
" ...... we can assume that, as a result of the constant capital flows, the countries with a well developed capital market will have an overvalued currency and a very low level of long rates. Which in turn leads to robust real estate markets and higher asset prices."
Interestingly, these comments reflect a similar view I heard from another source. That the US $ is holding up, despite concerns about trade deficts etc, as it is still seen as the safest and most stable place to have money, compared to other countries.
I Think I'll buy the book.
Has anyone else read it?
Any comments?
Garryk
