We all know this is not going to end pretty. Even the main stream media (MSM) is calling this a bubble, don't they love pending doom and gloom and what good does it do for their audience? Everyone is asking how this will affect our market. The better question is how to make money from this instead of just watching the impending car crash.
Nice idea from Cody at the realmoney.com it involves buying long dated out of the money calls and puts on the Shanghai Index, or a linked ETF, one of them is going to be worthless but as everyone knows there will be a massive move one way and one of the options is going to be well in the money.
I have a question on China. We have all seen the huge effect the infrastructure and manufacturing build has had on our mining companies, market and economy in general and we are told that there is huge coming opportunities as they moves more towards a consumer economy rather than a developing economy. But what effect will the growing middle class have on the global investment pool.
Based on an annual growth of one percentage point, the "middle class" people in China is expected to make up for 40 per cent of the total population in 2020.
We are told that there is an ever increasing supply of superannuation money coming into the Aussie market that is finding less and less to buy. What effect will the transformation of nearly a half of 1.6 BILLION people into savers and investors have on the markets of the future? I know that the Communist Party of China do not allow or have a lot of restrictions on the average person investing overseas but at some time this will change. Especially considering the mess that the China market is in now, with ever growing money chasing higher and higher prices. In any chase we are seeing increasing amounts of Chinese foreign investment and the ever growing Chinese companies will have to place their funds and profits somewhere. Are we looking at the Bubbles of all bubbles to be unleashed on anything that can be flogged off as an asset or are we on the verge of another huge increase in technology advancement pushed on by pools of money that can fund solutions to any problem? (That is what the market is for is it not) How can we add in say 10 to 20 years more than the population of the US in new investors to the world market? Even if they cannot directly buy BHP shares or Intel all that accumulated money has to be put to work somewhere if it is in their own market won't that create china based company with cheque books big enough to raid anything?
Forget interest rate worries in the US, Europe, South Africa, New Zealand I woke up this morning and wanted to throw away all the work i have done to become a profitable futures scalper (5 years)and become a value investor . Someone write me a deep out of the money call on the bubble 2017 it is going to be a hell of a ride.
