Short-Term Key: Negative
Long-Term Key: -70 (Neutral-to-Negative)
-------------------------------------
Inside this week's update...
***** Can't read China's poker face?
***** China tells its people to “buy gold.”
***** The two greatest investment opportunities for the next decade.
------------------------------------
China is a hot topic these days, and rightly so. It's the storm cloud gathering over our backyard. And as much as we try to reassure ourselves it will blow over, it's time to move the party indoors - or perhaps start planting seeds.
Of course, there are always deniers. Recently, we heard a short seller suggest that China's real estate market was in a bubble on the grounds that the nation was building commercial space equal to 25 square feet for every citizen – as if that was excessive.
Of course, that building program won't be completed for another couple of years. More to the point, in the U.S. we have more than 400 square feet of commercial real estate per person. So 25 sq. feet doesn't seem that ambitious for a nation that's fast becoming the world's factory floor.
Sure, a few cities in China that could accidentally find themselves with too much space for rent. It happens. But don't think that means the nation as a whole is becoming overbuilt.
One thing we know for certain is that China maintains an inscrutable poker face. It's a tough read.
Read more...
