De-stressing about Chinese equities

NavascuesChinaTC

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.

About the Author

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://http://www.miguelnavascues.com/

Be the first to comment on "De-stressing about Chinese equities"

Leave a comment