In this investment world, being over-obsessed with the Fed, it is FAR, FAR more important to understand the timing and the magnitude of a turn-UP in China’s economy.

Why? Many related reasons to sharpen your edge:

1. Who would dispute that the Fed is a perfect lagging indicator, especially now?!
2. China’s economy cycle is completely different from the rest of the Developed world
3. China is still largely ignored and underinvested in the West
4. China’s economy is comparable to the US, it grows faster.
5. The pace of recovery in China would define the trajectory of global inflation far more clearly than the Fed reactive actions

And we do have some good news:
China Manufacturing PMI has recently turned up overtaking the early 2021 highs

In this investment world, being over-obsessed with the Fed, it is FAR, FAR more important to understand the timing and the magnitude of a turn-UP in China’s economy.

Leave a Reply

Your email address will not be published. Required fields are marked *