A few days ago I posted a link to an interview with James Chanos on the growing property bubble in China. When James Chanos is bearish it’s definitely worth listening as it was when he got bearish on Enron in 2000. Marc Faber is another very astute investor who has successfully predicted bubbles such as the Nikkei stock market collapse meltdown and the 2000 NASDAQ bubble. In the Bloomberg interview below, Marc Faber outlines numerous bubble characteristics in the Chinese property market and advises that you don’t want to be in Australian stocks, the Aussie dollar or commodities if the market collapses. Of course, both these guys are usually early in the calls but the fact that they are both on the same page is enough for me to be extremely cautious.
I will be looking to get short the AUD against the yen and possibly the pound as it becomes evident the Chinese property bubble is beginning to crack. Although I have significantly reduced my exposure to Aussie stocks with the takeover of PWK recently, I may look to reduce that further in the coming months.
