The Indiana Jones of Finance, Jim Rogers, gives his thoughts on China, the global economy and what he expects in the future. (Bloomberg July22, 2009).
I have not bought any Chinese shares since November of last year… But would i buy them now? Absolutely not. Stocks have doubled in China in the last 9 months. So no, I’m not jumping into a moving bus.
For those who regularly follow Jim Rogers, this is a statement you may not expect to be hearing right now. But it seems that China is becoming very overbought for the moment based on the same green shoots we are hearing about here in the States. In an interview on CNBC July 16, Dr. Marc Faber, another China bull, also suggested China should see a significant correction in the near future (no exact time frame given).
Decoupling theorists beware – China is a bubble. This is a global crisis, and as forecaster Gerald Celente has suggested, the coming depression will affect everyone, everywhere. When the financial markets in the USA finally collapse, there is almost no doubt that China will falter, as well.