Chinese Inspired Global Investment Rally
Blog ArchiveIf the world follows the typical supply and demand economic theory, we are about to witness the beginning of a major global rally. The Chinese government recently loosened laws allowing its banks to invest indirectly in foreign equities and derivative products. China currently sits on $4.8 trillion dollars worth of reserve assets, of which it wants to slowly inject a percentage into the global markets over the next several years. The end result will be more money chasing fewer assets and prices going through the roof! I’m glad I’m long all the way in our 401K’s. The trick will be to get out right before the party ends. Related: China grants Blackstone $3B to invest abroad (via CNN)