Best wishes to all and, next to world peace among people, we should hope for the same among world markets.

I have let some time pass before commenting on a recent example of how fragile a world we live in. This past year through a time of greater economic danger, fear and volatility than most of us has experienced in a life time, many people cannot fathom how close we came to the edge of Hades.

Traditionally, sovereign wealth funds (SWFs) have focused on highly liquid investments, such as equities and bonds. But as these funds get bigger and bigger, the focus has been changing. In fact, some SWFs are moving into alternative investments and even buying up whole companies.

Take Dubai World, which is the emirate's SWF. This week, the firm teamed up with OAO Roskommunenergo (a Russian energy player) to bid $5.34 billion for OGK-1, which is a major electricity provider in Russia.

It's a savvy move. After all, Russia is in the process of deregulating the electricity market, which should come into effect by 2011. So there should be some pricing opportunities (keep in mind that prices have been held artificially low for decades).

Even so, OGK-1 has its challenges. Essentially, the company needs some serious capital infusions. But hey, that's something Dubai World can deal with handily, right?

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

MGM Mirage (NYSE: MGM) and Dubai World announced this morning they would launch a cash tender offer to buy back up to 10 million MGM common shares for $75 to $80 each. The companies' decision came on worries that an economic slowdown will lower demand for gambling. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on MGM.

The stock hit its 52 week high of 100.50 in October and set its 52 week low of 59.74 in January. MGM opened this morning at $73.71. So far today the stock has hit a low of $71.82 and a high of $74.29. As of 12:40, MGM is trading at $72.43, up $2.45 (3.5%). The chart for MGM looks bearish and steady while S&P gives MGM a neutral 3 STARS (out of 5) hold rating.

Over the past decade or so, Dubai has placed big bets on its ability to become the world's top tourist destination. Now Dubai is taking its plans to sin city itself, Las Vegas. Dubai World, which is the investment holding firm of the Dubai government, has decided to invest $5 billion in MGM Mirage (NYSE: MGM) for a 9.5% stake.

In addition, Dubai World will also be getting a 50% interest in the yet to be finished CityCenter development project.