Most investors are familiar with the speculative thesis that China is wrestling with a large property bubble right now, and that there may be little the international community can do to avoid the crash. The Chinese government is aware of the issues, and it’s stalling a $6.5 trillion urbanization plan on fears it will further hurt the economy. Property Crisis In China There are huge fears that several factors stemming from a Chinese property...
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Michael Pettis spoke at the Wince Country conference. Pettis rarely speaks so this is a treat for readers. Considered one of the experts on China, Pettis discusses China and the huge problems facing the country. The video was just recently uploaded online this past Tuesday. Jim Chanos also spoke at the conference on a very similar topic. Michael Pettis is a Senior Associate at the Carnegie Endowment for International Peace and a finance professor at Peking...
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“Davidson” submits: The National Assoc of Home Builders reported the May 2013 HMI(Housing Market Index) at 44. This indicator is a sentiment indicator of home builders and while it is a confidence indicator and not a hard number count of home building activity, the fact that it is a survey of a very narrow sector of our economy is likely why it provides a good forecast of housing activity. At 44, the HMI remains...
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Time and time again various markets inflate into bubbles before eventually popping and causing investors to lose huge sums of money. It doesn’t matter how often a bubble pops, many investors simply seem to never learn. Now, the Singaporean government is trying to deflate a housing bubble that has seen home prices skyrocket, in some cases to more than 50 years worth of rent! Housing Sector In Singapore Is Vital The housing sector in...
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China’s debt is out of control according to a new report today from CLSA Asia. The report is blunt and to the point regarding China’s problems with its debt load. Below is a summary from CLSA: China Credit Growth China is addicted to debt to fuel growth and this is obvious with the outrageous 58% credit growth in 1Q13. More than half of its debt was added in the past four years, which is...
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Jim Chanos, Kynikos Associates, shares his perspective on the markets; institutional shorting; and why he believes China’s economic troubles are getting worse. The rampant growth of credit in China appears to be forming a bubble, Jim Chanos of Kynikos Associates says. Kynikos Associates’ Jim Chanos, discusses why he thinks the PC markets “are behind the eight ball.” And, Toni Sacconaghi, Sanford Bernstein analyst, defends his buy rating on Apple, despite its recent pullback. CNBC’s...
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Gold was up today after a long slide last week. The precious metal has decreased significantly in price since Goldman Sachs recommended investors short the asset. Today Goldman is out with a new report on bubbles. While the report focuses on bonds, Goldman devotes a short section to gold. Goldman concludes that gold (at least the ETF) could possibly be classified as a bubble. Below is the excerpt on the commodity followed by the...
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Jim Chanos says has Been and Will Continue to Be a Bad Place to Invest in a recent interview. He notes “The Chinese economy has quadrupled in nominal terms in the last 10 years,” he says. “Western investors in the Chinese stock market have basically made nothing in that 10-year period. That’s a staggering indictment of the form of capitalism that exists in China.” The full video can be found here. 'Get ValueWalk's Daily Edition By...
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Jim Chanos China Presentation titled ‘China: The Edifice Complex’ The presentation is from a speech which took place at the Wine Country Conference on April 5, 2013. Jim Chanos covers Chinese banks, corruption, housing, infrastructure, debt, wages and more. Below is an excerpt from the wealth destruction section: Large-scale capital projects grow sillier by the day –New South China Mall – world’s largest and loneliest –New Ordos – empty city in Inner Mongolia –Sky City One...
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The Blackstone Group L.P. (NYSE:BX), an American asset management group, has begun to ramp up its operations and scope of impact in Asia, focusing mostly on real estate investments. Now the company has announced the establishment of a $4 billion dollar fund to focus exclusively on real estate development in various Asian markets, including China. With real estate investments and business opportunities declining in developed markets, investors have been pouring funds into booming emerging...
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REITs have become all the rage these days as a flood of companies from prisons to billboards to casinos are looking to take advantage of the structure with no double taxation, a low cost of capital, and premium valuations,. Fueled by healthy capital markets, a low interest rate environment, favorable supply/demand dynamics, and an improving outlook for fundamentals, valuations continue to reach new heights. The sector has outperformed the broader market for the last...
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