Chasing paper tigers

Chasing paper tigers

Beware the rallying bear. In January 1998, when Asian markets had halved from their July 1997 peak, flows into regional funds also turned positive (...). But those who got in then lost about a third of their money before markets finally bottomed in early September.

"Back then, the proportion of assets held in cash in Asian-focused funds also peaked at 17 per cent - five times higher than current levels. Other indicators, such as price/book value, are scarcely more tempting now. So far, real estate is the only sector marked down to the lows reached during the last recession."

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FT,24.03.2009

24.03.2009