Russell Napier’s “Most Important Chart in the World”

By on November 29, 2012

Consultant with stockbroker CLSA Asia-Pacific Markets, and the author of a course at Edinburgh Business School called a Practical History of the Financial Markets, Russell Napier, claims a severe reduction in the growth rate of Chinese reserves portends a slowdown in economic growth. According to William Hutchings of Financial News, Napier created his “most important chart in the world” which visually represents in graphic detail the magnitude of the slowdown.

Per Hutchings:

Napier said of the graph: “It is the most important chart in the world. The growth in Chinese reserves has determined all the key developments in financial markets in the last two decades. It printed lots of currency and artificially depressed the US yield curve. It has been the cornerstone of global growth, and now it’s over.”

Hutchings provides a bit of history and correlation between the status of Chinese reserves and economic growth at the source below.

Growth rate of Chinese Reserves

Back in May, Napier was record saying the best long-term opportunities were in Europe and commented on what would make the Greek stock market recover (reduction of bankruptcy risk), his view that things would get much worse in the U. S., and what could lead to a collapse of the U. S. Treasury market [link].

Source: Financial News

One Comment

  1. Stock Gain

    December 7, 2012 at 11:04 pm

    Thanks for sharing your information. Financial market is the key product to increase the growth of Chinese, I agree with your points.

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