An influential research report was released by Pivot Capital Management in August of 2009, entitled “China’s Investment Boom: the Great Leap into the Unknown.” 232 The monograph presents a detailed analysis of the nature and dynamics of China’s economic growth and concludes that continued GDP growth is largely the product of unprecedented and unsustainable capital investment.
[…] we believe the coming slowdown in China has the potential to be a similar
watershed event for world markets as the reversal of the U.S. subprime and
housing boom. The ramifications will be far-reaching across most asset classes,
and will present major opportunities to exploit.