CHIR - China Canary Warns About Global Economy And The Downside To Euphoria
2024-01-23 15:15:00 ET
Summary
- Chinese stock prices have lost money in the 16 years since 2007 and are now back near 2005 levels.
- Chinese treasury bonds have rallied sharply as beaten-up capital capitulates out of riskier markets and back to the relative safety of government bonds.
- China’s $18 trillion economy is the second largest globally, accounting for just over 17 percent of global GDP in 2023, compared with 25% for the United States.
Remember in 2007-08 when bulls were all in love with China and projecting endless growth and outsized investment returns as far as the eye can see? It turns out the business cycle was not repealed, and high valuations and euphoric consensus remain a reliable precursor to mean reversion and capital losses. Chinese stock prices have lost money in the 16 years since 2007 and are now back near 2005 levels....
China Canary Warns About Global Economy And The Downside To Euphoria