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Investors are mistaken to focus on the export sector in China, which only accounts for 5% of...

Investors are mistaken to focus on the export sector in China, which only accounts for 5% of GDP. The construction industry is 60% of GDP. "It's all real estate," says Jim Chanos, who continues to make the case for a capital spending bubble. His shorts include any company that sells industrial metals or cement to China.
Comments (4)
  • Tom Au, CFA
    , contributor
    Comments (6782) | Send Message
     
    Construction 60% of GDP. More than consumption could be.

     

    More producers than consumers. Look out below.
    10 Dec 2010, 04:56 PM Reply Like
  • Jason()
    , contributor
    Comments (4) | Send Message
     
    does that mean JJC is the wrong investment??
    11 Dec 2010, 09:42 AM Reply Like
  • Jason()
    , contributor
    Comments (4) | Send Message
     
    I like Jim Rojers, so my RRSP account is mainly in commodities
    11 Dec 2010, 09:47 AM Reply Like
  • Venerability
    , contributor
    Comments (3048) | Send Message
     
    Mr. Chanos is very consistent - which is admirable trait.

     

    On the other hand, I believe he is consistently wrong.

     

    Hint: Oooooooh, look at all the Chinese IPOs!

     

    And Oooooooooh, look at Chinese direct investments, exceptionally strong in the developing world for years, now also beginning to go strong in the developed world.

     

    We open our markets. They open their markets.

     

    And all those Mercantile Dollars get recycled properly, as did all those Petrodollars previously.

     

    Unfortunately, this is an UltraBullish scenario.

     

    Which turns the Scary PermaBears like Mr. Chanos into sweet little Teddy Bears.
    11 Dec 2010, 05:34 PM Reply Like
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