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MarketFoolery

MarketFoolery: 01.31.2011

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 31 January 2011

⏱️ 12 minutes

🧾️ Download transcript

Summary

Could China be the next Egypt? Is Amazon primed to compete with Netflix? Will ExxonMobil continue to produce big earnings?

Transcript

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0:00.0

It's Monday, January 31st, and this is market foolery. I'm Matt Greer sitting in for Chris Hill today, and joining me in studios our team of Motley

0:09.5

Full Analysts for a million dollar portfolio, Ron Gross, from income investor James Early, and from global gains, Tim Hanson.

0:16.0

Guys, welcome.

0:17.0

And that's nice to have you, Mac.

0:18.0

Okay, guys, we're going to talk some Exxon.

0:20.0

We're going to talk some Amazon.

0:22.0

We're going to talk some Netflix, but we've got to begin with the situation in Egypt.

0:25.2

Today marked the seventh day of anti-government protest in Egypt.

0:28.9

Opposition leaders are calling for a million people to take to the streets of Alexandria in Cairo tomorrow.

0:35.0

Now, Tim, this is an incredibly fragile situation.

0:38.0

We're a business show, we talk a lot about how the markets hate uncertainty,

0:42.0

and what we've got here is a whole lot of uncertainty.

0:45.4

Yes this you know brings up a question that I've asked before which is you know if you're an

0:48.6

investor what do you prefer to invest in? Would you rather invest in a democracy or a dictatorship?

0:53.4

And Egypt, for all intents and purposes up till today still, is pretty much a dictatorship.

0:58.4

And there, as an investor, there are things to like about dictatorship.

1:01.3

You know, there's a reason why China has the most premium valuation of any

1:05.0

major market in the world. It's because there's certainty you know what you can expect, you know

1:09.0

ostensibly what the government might do next even though they have some arbitrary and

1:12.6

capricious powers but you know I think the argument here that these are

1:15.5

Shinsack exchanges down sharply since this crisis began foreign investors in

1:19.9

particular are pulling money but at the end of the day democracy is much better

...

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