The Wall Street Journal is reporting today that investors are piling into Egypt. WSJ's Brett Arends writes, "While the Middle Eastern country teeters on the edge of chaos, investors have been piling into the Market Vectors Egypt Index fund (EGPT)." Whelp, looks like investors have fallen back in love with risky assets all over again.
WSJ says, "The fund, whose units trade on the stock market, bounced 8% on Monday on heavy volume. Fund company Van Eck, which manages it, says more than 800,000 units changed hands.
"The usual volume: About 10,000 units a day." (The WSJ requires a subscription.)
And you'll love this: "Van Eck has stopped issuing new units for the fund because it cannot calculate the net asset value. So instead giddy investors are now just buying and selling the fund units that are already out there."
Sure, Egypt has made economic gains and its stock market was rocking. But remember Egypt is a poor country with high unemployment among its recent colleg grads.