Friday, March 07, 2008

Proving once again the Bladder Theory of Finance

The Bladder Theory of Finance goes something like this: the more cash you have, the greater the pressure there is to piss it all away. I first heard of it from one of Peter Lynch's books. I should note that Lynch is a person whom I hold in very high regard particularly given his books were what turned me onto finance in the first place (dwarf tossing-related scandal notwithstanding).

China has no small amount of cash. I hope that these returns will help to calm protectionist fears of Sovereign funds (funds invested by governments - particularly given the most recent success of China's government).

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