Dear Professionals

This is an extention of my earlier post on Quarterly Capitalism. For now, the US economy shows strength and many argue that the rally still has some steam left. Outside USA, the scenarios are very different. One the one hand, quarterly capitalism has ensured Hot Money flows are pushing up Index stocks but on the other, the domestic economy is NOT showing robust growth. Several markets in Asiain including the group called emerging markets, are being red-flagged for high equity prices. Valuations have gone ahead of corporate earnings. Hot money has always flowed from the USA (primarily) and to a limited extent European markets, into Asian markets.  It has always left a trail of destruction.

Some interesting links:

Turkey

https://www.cnbc.com/2018/08/27/global-markets-continue-the-bull-run-but-have-they-forgotten-turkey.html

https://www.wsj.com/articles/china-and-dollar-test-emerging-markets-bull-run-1525078286

From junk bonds to emerging-market stocks, market turnover is through the roof, reaching multi-year highs.

https://www.bloombergquint.com/markets/2018/07/04/rife-with-anxiety-markets-churning-at-fastest-rate-since-2008#gs.SSdLlT4

https://www.cnbc.com/2018/07/05/china-has-worlds-worst-stock-market-and-it-could-remain-weak-until-tr.html

India's banking sector mess

https://www.garp.org/#!/risk-intelligence/all/all/a1Z1W000004B12XUAS?utm_content=August_27_2018&utm_source=affiliates&utm_medium=email&utm_campaign=dailynews&utm_term=article2

ttps://www.garp.org/#!/risk-intelligence/all/all/a1Z1W000004B12YUAS?utm_content=August_27_2018&utm_source=affiliates&utm_medium=email&utm_campaign=dailynews&utm_term=article3

Japan

https://www.bloomberg.com/news/articles/2018-05-17/a-warning-signal-for-global-stock-markets-is-flashing-in-japan