Makes more sense to continue getting energy assets. Imagine if China put $2 trillion into solar, wind, wave power, nuclear plants. Plug-in cars, properly insulating all its windows and walls. They would slash their energy costs to the bone, be the market leader in alternative energy construction and get a much better return What if they put the money into building out a couple of really good auto companies that actually could compete in USA, Europe, Japan, etc. Think Kia.Hyuandai, but 15% cheaper and equal or better quality. Their own Boeing/Airbus. Buy Toyota or Honda. Buy farmland, privately-owned forests. Or buy up American strategic companies. Wonder how much it would cost to buy IBM. Intel. Or "dollar cost average buying into key companies, up to 10%. They already took over Lenovo
That's what makes it a long term low risk investment at this time. Low risk & potentially huge reward.
China's economy is a few $T, year-after-year. Any such $2T purchase would not be much of a solution to anything. Not saying they wouldn't nor shouldn't do it... just not that big of deal in the big scope of their economics. I'm sure they'd much rather buy Iowa, if the US would let them.
Chinese are bagholders. Gold wouldn't do in an deflation environment. Real state? We are not low enough yet.
That is so funny. treasuries are sooo yesterday. Real estate is the new treasury. Plenty of commercial loans coming due.
Yeah, but they were buying at the highs, which would have been 3 yrs ago. If the Chinese start buying over the next few months, they are going to get some good deals.