• It's Coming...

    MARKET EDGES

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There's nothing wrong with being late to the party and eating the left overs ... that's the way you should be looking at being long China from here... if you haven't been with us for this most recent ride that is!

China will be the only country in the top 10 GDP leaders of the world who will drive a high single digit GDP growth rate in 2009. Will growth be lower than it was at the peak? Of course, that's why we we're short it prior to the masses coming to grips with the reality that you shouldn’t be long everything "Chindia" at a global stock market mania top.

High single digit growth combined with low single digit inflation = buy China. They are cutting taxes, tarriffs, and interest rates alongside plugging in a $586B stimulus plan. Export growth will remain double digits, and China's trade surplus will stay in the area code of $275B (new record). Gravy anyone?

Have a wonderful Thanksgiving,
KM

(chart courtesy of stockcharts.com)