Saturday, July 9, 2011
Do you think China a bubble? Is this the peak?
Check back in 12 months when all those shorting the Chinese currency are broke. Jim Rogers has made hundreds of millions in commodity trading and has actually moved to China and is teaching Chinese to his young daughter. He has been correct over the last 10 years when everyone else said he was ridiculous. They said buy and hold stocks. He said buy wheat, corn, sugar, coffee and certain precious metals. Rogers was right and the "buy and hold" fools lost everything and are still saying the same thing since their commissions depend on the stupidity of the public. China is not in a bubble. They are just in the very first stage of their development. What can bring the whole thing to an abrupt halt would be political instability, however, the Chinese Communists (now better Capitalists than Obama) are too intelligent to let this happen. They want to seize Taiwan but are playing a waiting game until they may do it without any intervention from the United States. That may be 10 or 15 years down the road. No, if I wanted to bet on an economy in the world today it would be China. Does that mean I would necessarily buy the Yuan and short the dollar, NO! It means there are investment opportunities in China which are bursting at the seams and opportunity is today for those who have vast capital resources. Do not bet against China.(The fact is, with the European Union cracking under the strain of debt it may actually be time to sell the Euro and buy Swiss Francs. Short the Euro for certain and you may also want to buy the dollar on the next dip.
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