Tuesday, May 17, 2016

Tim Price On Small Is Beautiful - Part 2
Continuing on his series emphasizing how smaller & unpopular markets are worth considering for investments in today`s environment, Tim Price references the work of Leopold Kohr, an Austrian who emphasized the virtues of smaller government for effective government .. Price: "The European Monetary Union in its euro experiment is doing the opposite - And euro zone economic policy is delusional. Despite the conspicuous failure of QE to reflate Europe’s economy, Europeans are being promised more of the same. Despite interest rates having now become negative, the monetary beatings will clearly continue until morale improves. The EU’s central bankers are in complete denial .. Investment markets don’t endorse gigantism or central planning. They favour choice, flexibility and competition. Our own investment exposure to the euro zone is extremely modest, focused almost entirely on smaller and nimbler businesses trading at attractive valuations, and we’re unlikely to raise it any time soon. The people, workers and consumers of Asia, on the other hand, operate in a society not ossified by protectionist regulation and central planning. They want urgently to become wealthier, and we are very happy, by investing in them, to help them toward that end."
LINK HERE to the essay

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