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For decades, China has been the driving force behind global economic growth. Population growth and cheap labour, combined with government spending on infrastructure and large quantities of exports to the rest of the world served as major growth drivers.
Imagine for a moment you are an investor in early 2008 questioning the value of the US dollar as a store of value, having seen the dollar index decline 40% from 2001 to an all-time low in March 2008.
One of the easiest ways to lose money is to buy something for more than it is really worth. When picking stocks, we seek to avoid permanent capital loss by buying shares of businesses that are priced well below our assessment of their intrinsic value.
The strongest deterrent against FSP compliance missteps is or should be: