Stock markets and real estate are off the charts. Leverage is tipping record levels for households, corporations, banks, and governments.
Most stocks are struggling to make headway, even when they deliver positive surprises to the market. Worse, stocks that disappoint in any way are receiving a swift and severe reckoning from investors.
Shares in Evergrande have been suspended in Hong King trading. International bond sales by Chinese developers have all but halted.
The only thing we don’t align on is the scale. Whether the next sell-off will merely be a big one…or THE Big One.
A Secular Bull Market Is Underway. The energy crisis is not one of surging demand. It’s one of too little supply that is unable to adjust to changes in demand…
This underinvestment in traditional energy means we’re likely entering into a secular bull market for oil and gas prices.
Despite the overnight celebrations (US markets up more than 1%), we’re starting to see the first major cracks emerge in China’s property market. But China is exporting more than just misery (or coming misery) to…
Retail sales, a key gauge of China’s consumption, rose just 2.5% in August from a year earlier, down sharply from July’s 8.5% year-over-year growth, according to data released Wednesday by China’s National Bureau of Statistics.
China has been trying to ‘rebalance’ its economy for a decade now. It hasn’t been able to do so. I don’t know why now is going to be any different.