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Archive for the ‘Commentary’ Category

Redirecting the Call for Action

by Douglas Clark Johnson

20 May 2010

During a recent dinner in Dubai, a longstanding colleague of mine from the private banking business asked, “What do you think of Islamic wealth management as an enterprise model?”

I was stumped. Not because I haven’t thought about it, but because it had been so long since I’d heard the question. These discussions were more common in the pre-credit crisis era, when the liquidity cycle was peaking. They have all but evaporated in the current environment. …continue reading

Calcutta Madrassah: Portfolio Management in a Post-Crisis World

by Douglas Clark Johnson

16 October 2009

Calcutta Madrassah CollegeKolkata is a proud multi-cultural city, a fulcrum of the Indian intellectual tradition. Its personalities have included Subhash Chandra Bose, a freedom fighter, Rabindranath Tagore, a Nobel Prize-winning poet, and Swami Vivekananda, a Hindu spiritual leader. For legacy reasons, the National Library of India is housed here, not in New Delhi. It is also home to the Calcutta Madrassah, the oldest educational institution in the city.

The Calcutta Madrassah is a proud building, sensibly designed. It opened in 1824 off Haji Mahammad Mohsin Square, some 50 years after the founding of the original Islamic college. On approach through the compact urban turmoil surrounding it, the building looks like some sort of Alexandrine temple complex. Overpowering Doric columns flanking the main entrance direct you inward, where two floors of classrooms surround a courtyard. At the far end of this attempt at a grassy space, there is a lone water hand-pump. Despite its somewhat topsy-turvy condition, the Calcutta Madrassah is a haven of peace in the tightly-knit urban landscape.

…continue reading

United States: The Demerol Economy

by Douglas Clark Johnson

08 September 2009

If the United States economy were a hospital, its patients would run the risk of addiction to the fiscal equivalent of Demerol, the high-powered painkiller. Whether the nation can maintain the current course of treatment without severe side effects, let alone withdrawal symptoms, is a quandary facing investors who are presented with a mixed set of economic and market symptoms.

Over the past year, the government has served as white knight to the auto industry, tried to stimulate the housing industry with tax credits, and pumped untold additional billions into the financial system. Congressional legislation meanwhile has been chock-full of spending programs in an attempt to amplify the wave of hand-outs. When combined with the Federal Reserve’s asset-purchase program, the total stimulus package has amounted to almost 20% of GDP. The figure is staggering by developed-world standards. …continue reading

Cave Dwelling in Malaysia: Reflections on the Credit Crisis

by Douglas Clark Johnson

11 June 2009

"Why would you want to climb all those steps?"

After some 15 years of travelling in and out of Kuala Lumpur, I finally had a chance to visit nearby Bukit Batu and its famous caves. My Malaysian colleagues had little interest in joining me: “Why would you want to climb all those steps?” A visitor does indeed navigate 272 of them to reach the principal cave; fortunately, they are divided into groups
of 17.

“Bukit Batu” means “Stone Hill” in Malay. This limestone outcrop is best known for a labyrinthine complex of some 18 caves. Of the few open to the public, the best known is the enormous Temple Cave. The complex was discovered by Europeans in 1878 and was heavily quarried until the 1970s, when the government began to protect it for tourism.

The half-day trip to the Batu Caves offered some reminders of our own global investment strategy. Metaphorically, we see themes in geology, archaeology, and ecology. These may be worth exploring as we look deeper into 2009 and a probable economic recovery in 2010. …continue reading

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