I seriously do not believe there is a bubble building that will burst in the next nine months, of course we will see consolidation and dips, buying opportunities, is what I describe it as!!!These dips by the nature of the market are likely to be more pronounced, because the gains are also greaterI am putting below a quote that a friend sent me, by email "The huge wealth creation by private entrepreneurs in China today proves that capitalism is thriving there. This is a country where stock traders don't have to pay tax on trading gains, workers gladly work 60 hours a week for $50 and people save 30% of their income to invest for the future. In a nutshell, China is more of a capitalist's paradise today than the proverbial "worker's paradise." No matter what you call it, the opportunities to make money in the country and from companies with solid China strategies are strong."Alastair
So a p/e of 50 is fine (Shanghai Composite)?The market going up a factor of 5 in 18 months, whilst the economy grew 15% in the same time is fine?Bubbles can not be seen from the inside.
"So a p/e of 50 is fine (Shanghai Composite)?The market going up a factor of 5 in 18 months, whilst the economy grew 15% in the same time is fine?Bubbles can not be seen from the inside." Ok I respect your views, are you shorting it then, I am long on it, I have put my money where my mouth is!!!!!!!!Alastair
I couldn't agree more with your comment, I live in Belgium the second most expensive country in Europe as far as loancost. Entrepeneurs pay 2 wages one to their worker and one to the state. It has come that far!On top of that we work between 34 and 38hours a week. Ok we are supposed to have qualified workers but China is closing the gap so fast.In my region textileindustry has but all vanished abroad. The world will be a different place in 5 to 10 years. The speed of the Chinese developement is tremendous. I get reports from people who travel there on a frequent basis. In all sectors (insurance,oil,coal,dryshipping,solar energy,.... you name it. What's more the new chuppies know how to consumme. Watch YUM.Regards
A friend in Opole, Poland (a small city there) says a Chinese company is building a factory there to make big (flat?) screen televisions. I think LG, a south Korean company has a similar factory in Wroclaw (a larger Polish city). Presumably, the Asian companies are trying to take advantage of the lower tariffs that I assume are imposed on imports to EU countries if much of the product is made in a European country.It is sort of like construction of south of the border factories after NAFTA. Anyone have an idea how big a trend this is? It could undercut Chinese businesses if the trend is big enough.
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