April 15, 2007
Growth at What Price?
From an interview with Jason Trennert in this week’s Barron’s:
“There is no question that the growth dynamics of, say, China and India are better than the prospects for U.S. economic growth. But what are you are paying for that growth? The S&P 500 is trading at 15 times earnings, and it’s a very liquid market, while the China Shanghai A-Index is trading at 40 times earnings. At this stage of the game, you get plenty of exposure to Thailand, to China, to India in large-cap U.S. stocks without any of the liquidity or valuation risks that you are taking by playing in local emerging markets. About 40% of the S&P 500’s operating profit comes from outside the U.S.”
I’m always pleased when I happen to catch the commercials running on prime time Chinese TV: a pitch from Procter & Gamble, next an an ad for McDonald’s, with some Johnson & Johnson product following behind, etc.
April 15th, 2007 at 3:24 pm
agreed also a good cover story on adobe.
the foreign acrobat and readers are huge upside.
April 15th, 2007 at 7:32 pm
howard: I rarely read the cover story, and nowadays only have time for the interviews and little else.
April 16th, 2007 at 4:46 pm
So you watch TV now? Why the conversion?
April 16th, 2007 at 9:49 pm
pancho: I don’t, but Nanny watches the evening news and weather report so I hear it in the background during dinner.
April 17th, 2007 at 12:51 am
hmmm, I was under the impression you were the nanny (househusband / Mr. Dad)…. how much does a good nanny cost in China with labor so cheap there?
April 17th, 2007 at 6:34 am
pancho: You flatter me. A good nanny is extremely difficult to find and if you are lucky enough to find one, she’ll expect to be paid around US$300 a month (live-in, 24-7 support).
April 17th, 2007 at 9:08 am
$300 is not cheap for China.. over here you can expect to pay about $460 for a live-in but half of this goes to the government as tax! And cost of living in Singapore is quite abit higher. The rate also depends on the maid’s nationality, usually Indonesian or Philippina with the latter being more expensive.
April 17th, 2007 at 10:07 am
Eyal: You can get a Philippina nanny in Beijing but the cost is high, I’d guess US$500/month minimum, and you’d have the hassle of securing a visa for her. The trouble in China is there is no “service” culture (thanks to 40 years of communism), so it’s extremely hard to find good help, and if you do find someone they’re going to expect “premium” pay. As Mrs. Andy Fastow once complained to a relative of mine in Texas: You just can’t find good help anymore. (true story, lol)