Friday, April 16, 2021Volume 2, Issue 23 “It is well known that humor, more than anything else in the human make-up, can afford an aloofness and an ability to rise above any situation, even if only for a few seconds.” —
Burton Malkiel, professor of economics at Princeton University, is the author of A Random Walk Down Wall Street and is currently preparing the tenth edition of the book. In a recent Financial Times interview, Mr. Malkiel insists that the data continue to indicate that markets are efficient despite the turmoil of recent years. He has found that the majority of active investors continue to underperform passive index funds over long periods of time. In addition, his research indicates that the passive approach provides better results even in emerging markets such as China. Read this article for more details and a link to the video.
It is so fashionable these days to read stories about a rising China and declining America that any contrarian feels almost provoked to offer a rebuttal. However, it is increasingly difficult to do so at a time when the Chinese are taking on initiatives to improve infrastructure that make American efforts seem trivial in comparison. China’s plans for high speed rail offer the type of astounding numbers that only reinforce common beliefs regarding China’s rise. Read this article for more details.
Zachary Karabell has made an important contribution in Superfusion: How China and America Become One Economy and Why the World’s Prosperity Depends on It. Mr. Karabell attempts to trace the history of China’s remarkable rise over the past twenty years by presenting a wide ranging “thirty thousand foot” view of political and economic forces as well as individual case studies of American companies that penetrated the Chinese consumer market. The underlying thesis is that China and America have “fused” into a single economy of “Chimerica”. Read this article for the book review.
Companies that attempt to expand from their home base into foreign countries must adapt their operations to suit the preferences and peculiarities of each local market. In the “Tea with the Economist” interview shown below, Wal-Mart’s head of China operations provides some insight into how Wal-Mart has adapted the familiar model we are used to in the United States to suit local preferences in China. Read this article for more details and a video.