Forecasting China’s Eventual Credit Bust – Not Easy

By on December 13, 2009

Accurately timing the bursting of bubbles an be very profitable, however, it is extremely difficult to recognize a true popping from a mere correction. Many have been pointing out the bubble developing in China which could pose a massive problem to the world economy if it ever deflated. Zero Hedge is one of the latest blogs to cite SocGen’s concerns on this issue.

SMA Comment: The challenge will be not to buy too soon on the first signs of collapse, because this will eventually fall long and hard. Once the 200-day moving average of the Shanghai composite index gives way, it could be a year or more before the bottom is reached.


Zero Hedge


Sad – Pearl Jam

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