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I saw somewhere that company with a strong balance sheet is "antifragile." The word -- coined by best-selling author and trader Nassim Taleb.“Try to invest in companies that have some trouble in their past and have come back from it,” Taleb recommends in his book Antifragile. Taleb says this is important after 2008.
It is natural to have pullback once markets become over extended and overcrowded. Asian markets such as Pakistan, Philippine, Vietnam, Indonesia and Thailand have slowed down after their mega bull run during last five years. In addition to above frontier and emerging markets, Poland and Argentina also had some great bull markets. Argentina market is also slowing. Above markets were darlings of fund managers and investors during last five years and some markets ended up with too hot. As a result of it, Investors turned into strong profit taking and selling stocks heavily. Investors and funds are looking for new markets now. Indian rupee is also having some pressure again. Currency performance in Turkey is worst. Markets which had good run over the last three to five years are having some pressure. Exception is overlooked and less crowded markets. Next winning stocks and markets could come from overlooked and less crowded areas and markets. Going forward strong balance sheet firms could dominate specially during second half of this year.