By Jason Kephart
Peter Chiappinelli, portfolio strategist at institutional money manager Grantham Mayo Van Otterloo & Co. is preparing for the worst from the Chinese stock market.
The firm is currently hedging its China exposure to near zero in the emerging-markets sleeves of its mutual funds, he said. The company has also taken a net short position on China in the hedge fund it operates.
The problem Mr. Chiappinelli sees is that there’s going to be no easy way out of the bubble that exists in China’s infrastructure and real estate.
“China is experiencing the mother of all bubbles,” he said today at the Bloomberg Portfolio Manager Mash-up in New York. “We don’t know when it’s going to pop or what’s going to cause it to pop, but there’s very little track record of countries successfully navigating a soft landing out of a bubble,” he said.
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how the fuck can china be a bubble? did the old men of great britian talk the same shit about america back in the 1800’s? what kind of asshole would think asia is fucked. they are young and actually have money. wages are rising. the peeps are comin up. wtf?
What kind of asshole would think asia is fucked? The same guy that thinks building ghost cities and railroads that go nowhere all in the name of keeping an artificially high GDP number is not the best way to sustain long term growth.
You know how a lot of people in America scream “just stop spending!” at the government. Well I scream, “just stop building shit you don’t need!” at China.
Do the Hugh:
http://www.youtube.com/watch?v=ektMQGbW3wk
the chinese market has been destroyed. sure some of the companies are frauds. just like american railroads in the late 1800’s. but the idea that bloated pig western stock markets are the “good buy” long term compared to china is fucking retarded.
Yea, you guys are right and gmo is wrong