Discussion in 'Shares' started by Tropo, 10th Sep, 2012.
Arrogance and ignorance are the feature of the article.
Do you know this world really? Do you know how a blind to see the elephant in a dark room? Could you touch the pulse of China in 2000? In hindsight, everyone is wise and clever.
The problems are the author could not make his money from this hindsight about China but get his arrogance and ignorance. Do you know where China would go? Down into the hell? If you believe you know you are idiots.
What is the market? A place to beat the arrogance and ignorance. Too many are perfect right now when they write something about the past in the rear mirror. However the profit is about the conjunction of the past, present, and future.
The article has some flaws in philosophy and logic and anyone read it but no self thought would be the losers in the market.
If you want the inside word on China read Michael Pettis or Andy Xie, both are very switched on economists who actually live in China rather than being Australian based economists who want to believe in fairy tales.
Long story short, you can't have exponentially growing export or investment driven growth forever, inevitable the economy needs to rebalance... that's what it's starting to do now.
Will people still need mining resources, yes, will commodity prices have the built in assumption that China's demand for them will continue to grow exponentially, no.
Result, continued commodity price correction in the short run, in the long run prices find fair value though probably continue to trend up over the coming decades due to shortages.
No one can save you but yourself in the market! If you are the loser something wrong is with you and don't blame anyone else!
Separate names with a comma.