Poor, Poor China

I understand it’s very chic to hate on China. All of the ugliest hedge fund managers (Chanos) are short and we are told often about how much they’re fucked.

Just a quick reminder here: The United Steaks has $19 trillion in debt. And China has…

$3.5 trillion in reserves. Granted, thanks to Yuan devaluation and subsequent market calamity, that number has dropped by over $100 billion, as of late. But who’s counting, really?

The hyper growth phase in China is over. Now is when they mature and become consumers, like us. Bear in mind, 90% of the companies listed here, from China, are 100% shit. So if you want exposure, you’re probably best served buying an ETF, like FXI, or one of the mega caps, like BIDU.

Markets are off to the races. The NASDAQ will rise by 10% this month. It has been written. Therefore, it shall be so.