Grantham: China Will Collapse
Jeremy Grantham of GMO is nervous about emerging markets, especially China.
Our other perennial favorite – emerging market equities
– has had an amazing recovery, all things considered, and is no doubt also vulnerable to a reassessment of how quickly the global economy is recovering. Deciphering the strength of the Chinese economy will also play a major role in formulating our view of any future relative strength of emerging. My colleague, Edward Chancellor, strongly suspects that the Chinese economy is dangerously
unbalanced and very likely to come unhinged in the next
few quarters, surprising the pants off investors.