You wouldn’t know it from the headlines. Or from the ongoing bullishness around iron ore stocks. |
Dear Reader, You wouldn’t know it from the headlines. Or from the ongoing bullishness around iron ore stocks. But China is in deep, deep trouble. Economically, it’s fraying at the edges. Retail sales growth declined 3.9% year-on-year in the second quarter. So much for the economy rebalancing away from investment towards consumption. Private fixed asset investment fell 7.3% in the year to June. State-owned enterprises provided growth, with their investment spending increasing 2.1% over the year. But China has a much more limited scope to keep its foot on fixed asset investment spending than it did previously. And the world is now turning away from the Middle Kingdom. The United States just ordered China to close its consulate in Houston. Beijing called the order ‘outrageous’. You can expect these tensions between the world’s largest economies will only increase in the lead-up to the November election. The coronavirus pandemic…disputes over trade…human rights…Hong Kong and Chinese assertiveness in the South China Sea… …China has become a pariah. And, as you’ll see here, this has several intriguing implications for your investment portfolio. Click here for my ‘trade of the decade’. Regards, | Greg Canavan,
Editor, Crisis & Opportunity |
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