Global market

**longtermbl** Mon Nov 28, 2005 11:09 am

Global market
I know Blast almost solely focuses on stocks traded in US. But it seems that more and more money flow into the oversea market, which is under-estimated over years compared with stocks traded in US. Any comments?

**blast_investor** Mon Nov 28, 2005 2:09 pm

Hi longtermbl,

Yes, the newsletter BIRTP only invests into US stocks or foreign stocks listed in US.

For one reason, I live and work in USA and the only stock market that I understand very well is US stock market. There is one saying "know what you are doing".

I would be very cautious on saying "underestimate" overseas market. Maybe they are underestimated, maybe they are overestimated. Lots of places like those in Asia or Latin America have all kinds of accounting problems and frauds in their stock market, I am very wary of putting my money there. One real example, Chinese Economy was very successful over past 20 years, but Chinese stock market over past 2 decades was almost disaster that had all kinds of frauds and accounting problems.

On the other hand, as a immigrant from China, I speak Chinese and English both. I am very aware of globalization. Any stock investment into US oil or commodity sector is an international play, particularly a play in Middle East politics and Chinese economical growth.

Globalization and outsourcing also affects lots of US companies in manufacture and service industry so that a global view of industry sector is always required to assess prospect of certain sector or certain business model.

For that matter, my opinion is just to stick what one can do best. I do not accept the view that investors have to diversify into stock market in Asia, Europe, etc. If you do not understand their market, you may put danger of your capital into very over-priced market or a market full of scandals by such "diversification".

**longtermbl** Tue Nov 29, 2005 1:37 pm

Thank you for your analysis.