Emerging markets eyed by pension funds

According to the Thursday's Financial Times, the third largest public pension fund with a total of US$ 154 bi, California Public Employee's Retirement System (Calpers), is considering 12 emerging markets to invest (other than China, India and Russia).

The best countries were chosen: (in this order) Poland, Chile, Czech Republic, Hungary, Israel, Jordan, Malaysia, Mexico, South Africa, South Korea, Taiwan and Brazil. Turkey, Argentina and Peru were discarded due to political stability, workers laws, transparency, liquidity and volatility.

Emerging markets have just 5% of global stock capitalization and their quality is improving with better accountability and transparency.

Two New Colorectal-Cancer Drugs coming

As reported in the Wall Street Journal, ImClone's Erbitux is expected to be approved by Friday and Genentech's Avastin is scheduled to the end of March. Options on DNA and IMCL may deserve due diligence.

DNA $97.95 on 2/12/2004

IMCL $43.96 on 2/12/2004

Soros says there is an asset bubble in both US and China markets

"China's asset bubble makes it ``very difficult to find vehicles for investing'' there, Soros said. That's a problem when you consider China is the only real source of growth in Asia, a region increasingly dependent on its demand for goods.

In the U.S., record current account and budget deficits are spooking investors who wonder if the world's No. 1 economy is living too far beyond its means and that a day of reckoning is near. The euro gained 16 percent versus the dollar in the last 12 months, while the yen gained 14 percent.

``Since the decline of the dollar in the short term is beneficial for the U.S. economy, the authorities actually like it,'' Soros said. But when currencies drop they ``tend to actually pick up speed'' and ``it's a very dangerous game because it can get out of hand.''

Not one to hide his distaste for U.S. President George W. Bush, Soros donated $12.5 million during the past year to two independent advocacy groups opposing Bush's re-election. "