LR European

China: Is This Classic Post-Bubble Price Action?

That is precisely what is exciting about China's prospects. As the 3/4 of the population is lifted out of extreme poverty they start to be able to afford the non-essentials. Growth from zero to 1 is an infinite percentage move!

The recent data on car sales and white good sales in China bears out this dynamic.


On Nov 05 05:11 PM untrusting investor wrote:

> True, but how much can the average Chinese consumer purchase with
> an average per capital income of something like $6K? One has to guess
> that most of that per capita income would barely provide for subsistence
> living. Saw the statistics on China per capita breakdown and it was
> something like 3/4 of the entire population is $6K or less in annual
> income. The other 1/4 is of course doing better but much of that
> was at about the $20K annual level.