You are currently browsing the Capital Comments weblog archives for the day 29. July 2009.
29. July 2009 by Dan Walkow, CFA, CMT.
The recovery rally in China has been nothing short of spectacular! However there are signs that the rally is long in the tooth with the recent IPO of China State Construction Engineering Corp surging 56% over its issue price. In addition we are seeing more and more concern over forced bank lending policies in China funding poor credits.
The stage is being for bubble like conditions and a correction at the very least would appear to be in the cards. This will have an effect on other markets around the world so plan accordingly.
As always, Jeremy Grantham of the investment management firm GMO writes a mean quarterly newsletter and he is very concerned about China at this point. Time to pay attention here.
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