Wednesday 2 December 2009

Dubai Inc - Markets for the week ending 27-Nov-09

Question: What is(are) the key lesson(s) from the Dubai World event?

a) A timely reminder that this is a too-quick-to-be-true recovery for the global economy
b) The decoupling story that emerging markets carries higher growth opportunities deserve to be charged higher risk premiums
c) Risky investments NPV-ed against implied state guarantees carries default risk that are typically underweighted by investors

Answer: All of the above.

Eric Tan,
Singapore

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