Russia is once again becoming a dictatorial state. As we have pointed out in these pages for over a year Putin is taking over companies owned by the west or by capitalist Russians, trying to get the Europeans over an energy supply barrel and bullying or arresting anyone who disagrees with his dictatorial behavior.
It is also interesting that his critics sometimes end up dead, for example the journalist Anna Politkovskaya. Journalism has never been a remunerative profession and it has never been appreciated in the west because of its left wing bias.
However, every freedom loving person should be aware that journalism is a great part of the reason that the Berlin wall fell and the "Cold War" ended with the ignominious defeat of the failed Soviet/ Soviet bloc economic and political system.
Putin is up to the same tricks and is becoming ever bolder. May I recommend everyone read an article on the opinion page of the July 17, 2007 Wall Street Journal entitled "For the Sake of One Man". This will be a great eye opener for almost everyone to the kind of behavior that is commonplace in today’s Russia.
Many people talk about the BRIC’s (Brazil, Russia, India and China). We do not invest in Russia because of these types of behaviors by their president. We do invest in India, China, Brazil and in other smaller countries like Singapore, Hong Kong, etc.; where government ethics are a lot better than in Russia and Venezuela.
WORLD ECONOMIC GROWTH ….CONTINUES APACE
Things are not slowing down they are accelerating!
Economic growth continues strong everywhere and the global stock markets are rotating from one sector to another in search of profitable growth. Many industries are enjoying record profits, especially the 6 themes that we have focused on for a long time.
• Growth of China, India and the Asian region creates investment opportunity in these markets.
• Energy demand will continue to grow; supply is not growing hence energy prices will rise.
• Non U.S. dollar based currencies will continue to appreciate.
• Demand for global financial services will grow rapidly.
• Industrial metals and precious metals will be needed to further global growth. Supply is stagnant and demand is rising, hence prices will rise.
• Transportation equipment is important for this growth to continue.
We are finding opportunities, and we believe our themes are in sync with what is happening in the global markets. If you are interested in hiring Guild Investment Management to manage your portfolio, please contact us.
Thanks for listening.
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