wakeup wednesday, page-100

the trouble with arb at the moment is relative valuations... some national markets, like hk, have bugger all resources and have always been highly speculative, have smaller middle classes (domestic consumption) and being mainly industrials, are heavily leveraged to the usa story, so they go higher and faster on the upside but faster and deeper on the downside.. those national markets with well established middle classes and with resource bases tend - or should tend - to be less volatile. imho.