China Finally Tightens

Discussion in 'Economics' started by BlueStreek, Dec 25, 2010.

  1. logical, but I still think we rally into Friday.
  2. Gzus


    Long overdue, they've been delaying it for quite some time. We'll just have to see what impact it has upon the markets.
  3. Constructing empty buildings uses lots of cement, which not surprisingly is priced at an all time high in China. The price to income ratio for Beijing housing is 27:1, five times the global average.
  4.'d that work out when Greenspan raised interest rates? Yuppers that'll slow things down. [sarcasm] irrational exhuberance anyone.

    Ya think global money is going to flow in or out of China with expectations of higher interest rates?

    Good timing on the news release.

    Hmnnn. I saw another piece on Chinese analysts commenting on European monetary policy.. booyah, we came along way from ping pong in hong kong.

    Where are those dollars going to go that Ben is printing - China or to the unemployed US workers starting up apple carts.
  5. Apple carts or coffee carts not permitted in most US cities. You need to pay pay pay for permits, leases, insurances, health fees, too many fees few unemployed can afford.
  6. Seems like a perfect time to buy gold.
  7. I'm thinking the complete opposite now. Seasonality for Gold ends in January and the US economy is getting stronger. Just when you least expect it Gold may correct. I like Copper far more then Gold at this point.

    In terms of trading, I'm looking at shorting junior miners and explorers that have rocketed up in price the last few months.
    Especially companies with negative earnngs or P/Es over 50.
    I think the correct strategy is let these companies pop up one more time then short them intraday using options.