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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (44747)	10/1/2011 5:51:16 PM
From: Spekulatius	1 Recommendation Respond to of 78667

>>My biggest concern is if any one or more of these companies would suffer a significant loss in value due to a European EURO collapse.<< Europe is more than baked in. The Black swan could be China - have you read the scary reports about the breakdown of the Chinese shadow banking system. Loan sharks would be the better word since they charge interest rates from 60-140% annually. Now this shadow banking system itself is financed by many legit institutions like state owned companies and even Chinese banks via trust companies. this is an older article, newer reports in HK or Chinese newspapers are far more alarming. economist.com My concern is a Lehman style meltdown that will cause a sharp reduction in Real estate building which is where a lot of steel and copper is consumed, as well as the fallout on GNP growth. I am sure that the Chinese government would step in at some point and also a program to build 32M affordable housing units in 5 years may help to compensate. Still a Lehmann style meltdown in China is a scary though and much more dangerous than the European debt crisis, imo.