Financial history of the greatest order is being written this year. We’re witnessing probably the greatest shock to the system, ever. There’s no way to be sure of the final outcome yet, but the world will certainly be a different place after all is said and done. Read More

Asia provides the best possible place for investing on the long side. Because of the cathartic phase the region went through after the financial crisis of 1998, its financial system is now in position to not only support the domestic economies but also to give a helping hand to failing financial institutions in the US and Europe. Read More

The US financial system is creeping toward socialization, and all participants await the next big wave of the crisis that’s made such a move necessary: The disappearance of a fair number of regional banks, as is always the case in such situations. The ongoing rescue operation is dictated by politics; failure of the banking system would mean total economic and social chaos. Read More

The US Treasury’s plan to rescue Fannie Mae and Freddie Mac should instill confidence that the authorities will do whatever possible to avoid a total collapse, but it’s also a stark reminder that the situation is quite dire. Read More

Infrastructure has been an ongoing investment theme here, and I continue to think that the infrastructure universe will reward investors over the long term. Emerging economies are finding that they need to improve their infrastructure, not only to better serve their export businesses but to give their domestic economies a fair chance to grow even stronger.  Read More

Now the focal point of both geopolitical and global financial market interest, its conflict with Georgia has afforded Russia the opportunity to reassert itself as a European power with well-defined strategic interests. Read More

Volatility remains high in Asia--we’ve updated the Silk Volatility System below--and investors aren’t willing to buy the markets yet, a point addressed in this space in early summer. Earnings forecasts have been revised downward, and speculation regarding the Chinese economic slowdown runs rampant. Read More

Asia-ex Japan has realized its worst-ever first half this year. And given the relentless beating the Chinese market has experienced of late, investor sentiment remains rather sour. As a result, there’s speculation that developed markets will eventually bounce back later this year. And this may very well be the case; after all, every bull market needs a pause to refresh. Read More