With the massacre of the China sector in recent months on par with the Merchant Energy sector after Enron....
You've brought up some nice memories. There is a huge difference in your comparison though, and that is the small time investor's ability to do DD on the companies involved. Example: after the Enron debacle, it was a matter of reading the filings to discover that RRI had $5.6 billion coming due in loans (that was when 5.6 billion was a lot of money). The loans were unsecured. It was public record. Obviously the banks were going to negotiate and the debt was going to be refinanced. Many of us made very good $$ on the play. It was the beautiful panic that creates opportunity, but it was also a reasonably safe bet given the available information.
You may well be right about the China sector, but how does a small timer DD these Chinese companies? Take their word? Take the word of an accounting firm that has no skin in the game?
We all know what talks and what walks. Dividends, dividends, dividends
