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Archive for January, 2010

Tartar Cameleer: Georgia as an East-West Trade Bridge

by Douglas Clark Johnson

25 January 2010

The visitor to the nation of Georgia continually encounters images by Niko Pirosmanashvili (1862-1918), known as Pirosmani and considered a master of naïve painting. His portraits of Georgians enjoying daily life a century ago—peasants, fishermen, musicians, even millionaires—pop up everywhere as restaurant murals and tourist mementos. And even occasionally as the original artwork.

Niko Pirosmanashvilli's painting The Cameleer

It is noteworthy, then, that Pirsomani’s sense of the ordinary extended to a man in oriental costume holding the tether of a Bactrian camel. Tartar Cameleer evokes the Silk Road, suggesting that the commonplace extended to caravans passing through Tiflis (now Tbilisi). In view of the painting’s 1914 date, the cameleer image may have been nostalgic, but it is a vivid, if rustic, indication of Georgia’s longstanding role as trade junction between Central Asia and Europe.

From the perspective of global investment strategy, Pirosmani’s portrait of the camel driver conveys the cosmopolitan nature of the Georgian economy. His worldview prevails into the present day as Georgia looks both East and West to affirm its progressive identity.
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Australia: Thriving Gateway to Asia

by Douglas Clark Johnson

09 January 2010

The credit crisis laid bare several longstanding tenets of the investment business, including that market prices are largely efficient, established markets are better regulated, and the biggest economies offer less risk. While elements of these issues remain true, we still face disjointed financial markets, generating incoherent answers to routine questions. One of the latest manifestations of this trend may have been the Dubai fiasco. Uncertainty and confusion abound.

There are few unified stories across the world today; Australia stands among them. Certainly the dimensions of its investment substance may surprise those distant to the story. Consider these points of uncommon knowledge:

  • The four largest Australian banks are all rated AA (stable) by S&P, placing them within the top 3% of banks globally on a credit-quality basis.
  • Australia’s largest trading partner is China, with the rest of Asia, including India, Korea, and Japan, amounting to some 50% of exports.
  • Australians have the largest pool of investment fund assets in Asia, more than 45% greater than Japan.

From an investor’s standpoint, we identify themes that suggest the relevance of Australia to a prudent, risk-adjusted portfolio strategy.
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