The World Is Getting a Grim Reminder on Scarcity
Crises do not emerge from abundance. In just one week, the Iran war has revealed just how close the cliff’s edge may be.
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In early October I wrote in this newsletter that if you felt like you’d missed out on easy money in Japan, you might want to look at South Korea. Nice valuations, same improving corporate governance vibe and, at the time at least, remarkably under-owned.
This went pretty well. So much so that I had been meaning to point out that the KOSPI was getting a little overpriced. I wish I had: as the war in the Middle East began, it fell 15% in a day. I’m not too worried about your portfolio, given that the index jumped 9% on Thursday and—though still 10% off its high—is up 75% over the last six months. You’re doing fine.