http://www.smh.com.au/business/markets-live/markets-live-everything-is-awesome-20171116-gzn6ds.html "For the last 40 years, the world's most important asset class has been – depending on your perspective – the dollar, US Treasuries (so same thing) or oil," Bernstein analyst Michael Porter says. Now none of them pass muster. "The definition of 'important' is malleable but try this one: name an asset class that – were it to either fall or rise in value by 30 per cent – would inexorably imply a global recession or a global boom? "Oil, gold and arguably the US dollar fail that test for the simple reason that all have seen price changes of or near that magnitude this decade with little direct effect on the global economy," Porter says. So what is the world's most important asset class now? Answer: Chinese real estate. "The health of the Chinese property market drives global demand for iron ore, coal, aluminum, oil, copper, steel, natural gas as well as trucks, cranes and excavators and other capital goods," Porter says. "Rising property prices staunch the outflow of currency which could tank the [renminbi] along with every currency and every asset class in every emerging market globally. Chinese property prices also drive wealth effects and with it demand for premium autos, gaming activity, luxury goods, premium spirits, air travel, leisure, hospitality, aircraft, and demand for general retail of every description. "China is either the largest consumer of each of these categories globally or holds the largest growth share in each of these categories globally. A downturn is not simply bad news for China. A downturn in property prices in China means a material cut to demand for all these end markets globally, and an even more substantial hit to sentiment." Read more at the AFR.com