A laughing
stock for the rest of the world.
Not exact matches
The usual proxies
for global growth — oil and other commodities, emerging market currencies, energy and mining
stocks — are almost all sharply lower as investors bail out
of any kind
of trade predicated on growth in China and the
rest of the emerging
world, which accounts
for 85 %
of the
world's population.
After an ugly six weeks in January and February when
stocks and oil prices tumbled in tandem, shares in the U.S. and much
of the
rest of the
world have recovered nicely, with the S&P 500 on track to rise by just under 10 %
for the year.
Since 1999, the median discount
for European
stocks relative to the
rest of the
world was 8 %; today it's about 13 %.
For example, in an ideal
world, a
stock that earns E, pays a proportion d
of that out in dividends, reinvests the
rest to grow at a perfectly constant rate g, and is expected to stay in business into the indefinite future, should have a P / E ratio
of d / (k - g) where k is the desired long term rate
of return (say 0.10 or 10 %) that the
stock should be priced to deliver.
Not only have US
stocks significantly outpaced Canada and the
rest of the
world (albeit with low returns by historical standards), but the US dollar appreciated more than 1 % annually, which boosted returns
for Canadian investors who did not use currency hedging.
Now that domestic
stocks have lagged the
rest of the
world for three years, Canadians finally seem to be warming to the idea
of investing overseas.
At the very least, Huawei should consider offering two software versions: its current, iOS - like design in China, and a toned - down, more
stock design
for the
rest of the
world.