De-stressing about Chinese equities


NY Stock Exchange represents 130% of GDP. Remember that this is the most reliable indicator for Warren Buffett.

However, Mr Bootle points out that the Chinese economy is experiencing some problems. The country is growing at 7% a year although it has been China has been investing about 50% of its GDP, and that is not going to hold. Eventually, Beijing must change its growth model from an import-oriented economy to one more based on internal demand. But this shouldn’t cause any sudden markets outbreak.

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Miguel Navascués
Miguel Navascués has worked as an economist at the Bank of Spain for 30 years, and focuses on international and monetary economics. He blogs in Spanish at: http://

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