Tag: speculation

Why the trade war will usher in a long, drawn-out bear market: Andy Xie Article

This article “Why the trade war will usher in a long, drawn-out bear market, with stocks, bonds, credit and property all at risk” by Andy Xie took some time to think about.

Shakeout of Speculators
Historically low interest rates have allowed people to take out debt cheaply. These funds have been sued to purchase risky assets. This has led to speculation. Now that interest rates are rising this will force speculators to use more expensive funds to service their debt. Over leveraged companies will not survive.

Chinese Housing Market: Trying to Figure it Out

Housing in China is a really hot market. Prices are skyrocketing. Yet there are some very curious trends. More farmland is being converted to tall apartment buildings, but when finished are hardly occupied. In fact at night there are few lights on, and few people live there. What is the point of all these empty apartment buildings? Meanwhile housing prices continue to rise, becoming more out of reach to the average Chinese family. Speculation abounds.